Ethereum Experiences Bullish Breakout

Ethereum’s persistent downward spiral came to an end following a significant test at the support level of $1504.0. A descending trendline had previously resisted any bullish attempts, effectively steering the price downward toward the demand zone at $1504.0. However, an impulsive bullish breakout occurred after price action successfully breached the descending trendline, marking a confirmed bullish reversal.

Throughout May and June, Ethereum traded within a tight range, consolidating between the key levels of $2785.0 and $2365.0. This prolonged sideways movement created a buildup in momentum. Over the past week, the price has broken out of this consolidation zone, signalling a bullish continuation. The current bullish trajectory is aimed at the origin point of the previous bearish trend, with $3997.0 now emerging as a critical upside target.

Ethereum Key Levels

Demand Levels: $2365.0, $1504.0
Supply Levels: $2785.0, $3504.0, $3997.0

What are the Indicators Saying?

The Bollinger Bands on the daily timeframe tightened significantly in May and June, reflecting the low volatility and prolonged consolidation phase. This contraction suggested a potential volatility expansion, which has since materialized. The MACD (Moving Average Convergence and Divergence) indicator provided a bullish crossover shortly after the price rebounded from $2365.0. This crossover was accompanied by increasing green histogram bars, confirming upward momentum.

Currently, Ethereum continues its bullish rally, and the next major resistance level to monitor lies at $3504.0, a key zone where sellers may begin to challenge the upward move.

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