Ethereum has caught the market’s eye by successfully breaching major descending trend lines on both the daily and 6-hour charts. If this upward momentum persists, Ethereum could aim for notable resistance levels at $2,460 and $2,650, according to market insights.
What Does the Daily Chart Reveal?
Currently, the ETH/USD pair is hovering around $2,379, having moved above a pivotal descending trend line. Following a recent drop from higher valuations, Ethereum managed to regain its footing within a crucial support range of $1,600 to $1,821. This rebound has moved it into the last wave of a corrective pattern known to traders as the A-B-C wave.
Technical analysts identify the full extension target for this rally’s wave (c) as correlating with $2,650. On the daily chart, this price point, marked at $2,657, is perceived as significant short-term resistance for Ethereum.
“Ethereum’s ability to maintain its position above this critical resistance line over consecutive days suggests that buyers are asserting their influence over short-term market dynamics.”
To maintain its upward trajectory, Ethereum must conquer the next resistance bracket between $2,617 and $2,957. Inside this range, the 38.2% and 50% Fibonacci retracement levels are crucial. If Ethereum continues to climb, it may test $2,862 and $2,995, eventually eyeing $3,228 amid a vigorous uptrend.
Short-term Challenges Lie Ahead?
A separate analysis of the 6-hour chart via Binance shows Ethereum breaking above a short-term descending trend line. The cryptocurrency experienced a robust rally last April, followed by a consolidation phase, dipping to test support around the $2,220–$2,260 range.
Ethereum is currently retesting the upper limit of this consolidation zone. Trading above this trend line suggests buyers are gearing up for another breakout after subdued activity levels. Analysts advise waiting for a confirmed retest post-breakout as a more cautious strategy for opening new positions.
“As long as Ethereum retains its support above the breached trend line, the prospect of reaching $2,460 remains plausible,” experts conclude.
However, if the retest falters and ETH slips below this trend line, it might revisit the crowded $2,300 range and probe lower support. Holding the breakout level is critical for sustaining this upward drive.
Ethereum is now poised at significant price thresholds, with two breakout scenarios evident in current chart patterns. Persistent closes above both short-term and daily trend lines could enable Ethereum to meet its $2,460 and $2,650 resistance objectives soon.
