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Ethereum (ETH) is trading above $2,600 after a 5% retracement from local highs around $2,750. Over the past two weeks, ETH has maintained an upward trajectory, sparking optimism in the market as investors look for further signs of strength in price action.
Analyst and investor Carl Runefelt recently shared technical analysis, highlighting that Ethereum has broken out of an uptrend that began forming in early August. According to Runefelt, once ETH confirms solid demand around its current level, it is only a matter of days before the next rally begins.
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As the broader crypto market gains momentum, Ethereum is poised to continue climbing, and investors are closely watching for confirmation of support at this key level. If ETH holds up, the next step could be to target higher price zones, thereby strengthening the bullish sentiment. The next few days will determine whether Ethereum can resume its upward trend and capitalize on the current market strength.
Ethereum exceeds $2,600
Ethereum has underperformed Bitcoin this year, leaving many investors worried as the next bull run approaches. While Bitcoin surged, Ethereum struggled to recover with the same strength. This sparked concern among ETH holders, who expected the second-largest cryptocurrency by market capitalization to lead the charge.
Analyst Carl Runefelt recently shared a compelling analysis on X. The analysis presents a price chart that reveals Ethereum breaking out of a symmetrical triangle on the daily time frame – a classic bullish pattern.
If the price action holds, this could send ETH to $3,400, according to Runefelt’s analysis. This breakout is a key signal for Ethereum, but its sustainability depends on whether the price can successfully retest the upper triangle line, which previously served as resistance.
Currently, Ethereum is testing support at this critical level, with the limit being $2,600. A close below $2,600 would invalidate the bullish symmetric triangle thesis and could lead to further decline, undermining the optimism surrounding ETH’s future price action.
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However, if Ethereum holds above this level, it could mean the breakout is intact, paving the way for a strong rally as the broader market prepares for a bull run. The next few days will be crucial for the trajectory of ETH.
Price Action: Technical Levels to Watch
Ethereum is at $2,620 after failing to reclaim the 200-day exponential moving average (EMA) at $2,795. The price is testing support around the crucial $2,600 level, which will determine the direction of ETH price action in the coming days.
If Ethereum sustains above this level, the next target would be back above the 1D 200 EMA at $2,800. This is a crucial price zone as it aligns with ETH’s local high set in late August at $2,820.
A successful break above $2,800 would signal a strong bullish continuation, making a push to higher levels imminent. However, if ETH fails to consolidate above $2,600, the risk of a retracement to areas of lower demand becomes increasingly likely.
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Traders and investors are closely watching these levels as Ethereum looks to regain momentum amid broader market uncertainty. The next few days will be crucial in determining whether ETH continues its upward trend or faces further downward pressure.
Featured image of Dall-E, chart by TradingView
