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- Ethereum shows a V-shaped recovery and bullish setup, hinting at momentum for a breakout move.
- A reclaim of the lost rising trendline could confirm Ethereum’s breakout and unlock further upside momentum.
- The $2.8K resistance zone is a key level where past reactions sparked major market moves for Ethereum.
Ethereum is gaining strong indications of a possible breakout since it has sustained momentum above critical technical levels. The second cryptocurrency by market capitalization has recovered strongly, creating a bullish formation that indicates the continuation of its trend toward the upside. As interest in the market and the trading volume surge, analysts will be keeping a close eye on the $2,800 resistance area to see the next major movement of Ethereum.
Crypto analyst Rose Premium Signals highlighted a V-shaped recovery that has seen Ethereum rise above the 50-day, 100-day, and 200-day exponential moving averages. Such a retracement has been viewed as a very positive sign of market sentiment and a newfound resiliency in the broader Ethereum structure.
Source: X
Bullish Setup Builds
The chart is also forming a bullish flag pattern, which can be regarded as a precursor to additional growth. Nevertheless, there is one important factor that has to fall into place before Ethereum can validate a breakout. The price should regain a rising support trendline that had been lost. This level was a major support level previously, and is currently a critical threshold level to make more gains.
As long as that level is regained, Ethereum will be in what analysts call a buy-the-dip area. This implies that the market structure remains favourable towards strategic accumulation, particularly by long-term holders or traders seeking mid-range entries with upside probabilities.
Analyst Daan Crypto Trades revealed the importance of the $2,800 price area. Based on past market behaviour, this level has always caused a significant price response. Ethereum is retesting previous resistance as support or faces rejection at this area, either way, the market usually resolves with a strong and directional move.
Source: X
Ethereum Tests Key Level
Analyst recommended paying attention to how Ethereum acts near this level on larger timeframes. In case the breakout is confirmed, then it could be the beginning of a more substantial upward trend. On the other hand, a refusal may indicate that the market requires further time to develop power ahead of a long-lasting rally.
At the time of writing, Ethereum is sitting below the $2,800 resistance. The price action is narrowing, and the volume of trading is rising. These are usually indications that a major move is close.
As technical patterns and analyst sentiments coincide, Ethereum seems to be ready to extend in its next directional move. The key area of interest is the $2,800 zone. Which could dictate whether the market will get another leg up or a short-term cooldown.
