Ethereum (ETH) Begins Uptrend Breakout

Ethereum (ETH) Starts to Break Downtrend

Ethereum (ETH) appears to have finally found its bottom, with $2,000 potentially marking a significant support level. The cryptocurrency is now showing signs of recovery and climbing back up. A critical resistance level to watch is $2,820, which, if surpassed, could signal a trend reversal for this major layer 1 asset.

Has $ETH Turned the Corner?

For $ETH investors, the past six months have been challenging. During this period, the $ETH price has not only continued to decline against the dollar but has also underperformed compared to some of its layer 1 competitors. The approval of a Spot Ethereum ETF, which has thus far led to net selling, has only added to the woes.

However, there are indications that $ETH might be turning a corner from a technical analysis standpoint. Since hitting a low of $2,000, the price has risen over 17%, reaching its current level of $2,433.

$ETH Breaks the Descending Trend Line

The short-term chart for $ETH shows a significant technical development: the price has broken the descending trend line and recently confirmed this break. Key Fibonacci levels are now supporting the price:

• The 0.786 Fibonacci level has provided support for the recent bounce.
• The price has managed to hold above the 0.618 Fibonacci level.

The next crucial step for $ETH is to break above the recent local high at $2,820. Achieving this would confirm a higher high, indicating the start of a new uptrend and setting the stage for further gains.

Strong Support and Emerging Momentum

On the weekly chart, $2,300 (marked with an orange line) is now a strong support level. Following the break of the trend line, the $ETH price is moving towards the first Fibonacci level at $2,550. If this level is surpassed, the price will encounter an important band of horizontal resistance (marked with blue lines), ranging from $2,800 to $2,900.

Additionally, the Stochastic RSI at the bottom of the chart is showing a potential bullish signal. The fast indicator line (blue) is crossing above the slow indicator line (red). Although it’s early, if these lines continue to rise and exceed the 20 level, it could bring strong momentum to the $ETH price.