Ethereum Breaks Out of Consolidation

Ethereum has finally broken out of a prolonged consolidation phase that kept the market in a narrow range since August. Throughout this period, price action oscillated below the critical resistance zone at $2,739 and above the demand zone at $2,251, showing hesitation among market participants. However, Ethereum recently broke above a persistent bearish trendline on the daily chart, which had previously served as a resistance level and limited any upward movement. This breakout signals a potential shift in sentiment. The formation of higher lows on the daily chart provided further support for this bullish move, indicating that Ethereum is primed for a strong upward wave after months of consolidation. The substantial size of the bullish candles driving the breakout highlights robust buying momentum.

 Ethereum Key Levels

Demand Levels: $2,430, $2,251, $2,500
Supply Levels: $3,086, $3,600, $4,000

 

 Indicator Analysis

The 30- and 50-period Moving Averages, which had been tightly bound within the consolidation range from August to October, are now positioned below the price following the breakout. This indicates a shift to a bullish market structure. Additionally, the Elder Ray Bull and Bear Power indicator reveals that buyers are currently dominant, reinforcing the possibility of a sustained uptrend. These technical indicators collectively suggest that Ethereum could see further gains as buying momentum builds.

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