Ethereum Continues Bullish Trajectory, Approaching $2,600
Ethereum has been on an upward trajectory, currently trading close to $2,600 after recovering from a dip to the $2,220 zone in late June. The cryptocurrency is facing resistance at a key supply level but maintains a bullish structure, indicating that the upward momentum could persist. However, traders should proceed with caution at these higher levels.
**Market Insights**
**Ethereum’s Daily Performance**
On the daily chart, Ethereum is seen trading around the $2,600 mark, having successfully bounced back from the $2,220 area. It has surpassed the 200-day moving average near $2,400, signaling medium-term strength. Although a previous rally halted at $2,800, Ethereum is consolidating below this critical supply zone, aiming for a breakthrough. The digital asset’s structure remains bullish as long as it stays above the 100 and 200-day moving averages without dropping below $2,400. While momentum is building, a daily close above $2,700 is essential for further confirmation. The Relative Strength Index (RSI) is between 57 and 60, indicating steady bullish momentum without signs of overextension. A successful breakout could see Ethereum revisiting $2,880 highs and potentially challenging the $3,000 mark.
**Short-Term Outlook on the 4-Hour Chart**
The 4-hour chart showcases Ethereum forming a rising wedge just below the $2,700 resistance level, marking a critical juncture. Ethereum has tested this resistance and is now pushing against the upper boundary of the wedge. With the RSI around 61, the bullish momentum is evident, but the formation suggests a potential breakdown risk. The immediate levels to watch are between $2,500 and $2,550, correlating with recent lows and the wedge’s lower boundary. A break below this zone could lead to a drop towards the $2,300 area. Conversely, a breakout above $2,700 could negate the wedge breakdown risk and pave the way for a move towards $2,900 and beyond.
**On-Chain Developments**
Ethereum’s on-chain metrics offer support, with exchange reserves dropping to 18.93M, one of the lowest figures in recent times. This trend towards accumulation and self-custody suggests reduced selling pressure from centralized exchanges, historically aligning with bullish market phases. Although market sentiment leans slightly bullish with Ethereum regaining key averages and neutral funding rates, a significant breakout may need an additional catalyst, such as a short liquidation cascade, to drive prices higher.
Tweetable Insight: “Ethereum edges closer to $3,000 as it maintains bullish momentum, trading near $2,600. Key technical and on-chain indicators suggest strength, but caution is advised. #Ethereum #CryptoMarket”
