- Ethereum breaks out of a long-term descending wedge, signaling a potential bullish reversal from the $1,550 support zone.
- Momentum indicators strengthen as RSI rises to 55.73 and MACD flips bullish, confirming increased buyer control.
- ETH faces major resistance at $2,150; failure to hold $1,800 support may lead to a retest toward the $1,700 zone.
Ethereum has had a notable rebound after finding support at a key daily level, leading to renewed interest from bullish traders. Following weeks of downside pressure, the asset bounced 10% off the $1,550 zone, historically a high interest area.
Despite the bounce, Ethereum is within a broader bearish structure that has dominated since late 2024. The recent move has raised attention, but analysts stress that confirmation through structure and volume is still required for a sustained recovery.
Ethereum Breaks Out of Descending Wedge Pattern
Price action shows that Ethereum recently broke above a descending wedge, a known reversal structure. This wedge was formed by declining swing highs and swing lows from approximately $3,200 to $1,530.
The breakout occurred between $1,950 and $2,000, and the asset is now testing the upper boundary near $2,150. Notably, this $2,150 area coincides with prior resistance and marks the top of the wedge.
Ethereum’s movement through this level may define the near term trend. Analysts, including Ali, observed that “Ethereum is breaking out toward $1,850.” Captain Faibik added, “Ethereum is Bouncing back just as we Expected.”
Indicators Show Improving Momentum
Ethereum’s recent move coincides with a visible uptick in volume and strength in key momentum indicators. The RSI is at 55.73, firmly above the 50 neutral line.
This shift indicates increasing buyer strength, while also potential for more upside, as it remains below overbought territory. Meanwhile, the MACD has crossed above its signal line, with the histogram flipping positive.
This movement confirms increasing bullish momentum. The MACD value has surged to 36.92, reversing a months-long downtrend. The signal line is far below at -51.48, emphasizing the crossover’s significance.
Support and Resistance Levels
At press time, Ethereum was trading at $1,798.17, up by 2.39% on the day. The daily range was between $1,744.95 and $1,818.18. Immediate resistance is at $2,150, both a psychological level and the upper wedge boundary.
Support is between $1,750 and $1,800, where the recent breakout occurred. Volume has risen sharply, hitting 313.33K ETH. This supports the breakout and indicates growing buyer confidence.
However, failure to maintain momentum above $1,800 may open ways to a $1,700 retest. While the broader outlook remains bearish, short-term indicators and pattern breakouts point to improving conditions.
