Ethereum

Trader

Momentum

<p>Ethereum is entering a moment of renewed strength as momentum indicators flash their first clear shift in weeks.</p>
<p>A new analysis from Merlijn The Trader highlights a decisive move in the Relative Strength Index (RSI), a tightening price structure above critical support, and a setup that suggests a breakout candle may be close.</p>
<h3 id="rsi-breaks-its-downtrend-as-price-holds-above-support">RSI Breaks Its Downtrend as Price Holds Above Support</h3>
<p>The RSI has pierced a multi-week descending trendline, marking a shift in momentum. This type of breakout typically appears before price follows, making the signal relevant for traders assessing early trend reversals.</p>
<p>Price action is also coiling above a major support band around $3,000–$3,100. Holding this zone is essential. As long as Ethereum stays above $3.1K, the analysis suggests a move toward $3.4K becomes likely. This aligns with the narrowing triangle formation visible on the two-day chart, where price continues to grind higher after rejecting the lower boundary earlier this month.</p>
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  Source: <a href="https://x.com/MerlijnTrader/status/1999917363878318582" rel="noopener noreferrer nofollow">https://x.com/MerlijnTrader/status/1999917363878318582</a>
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<h3 id="break-above-3-4k-would-open-the-door-to-higher-levels">Break Above $3.4K Would Open the Door to Higher Levels</h3>
<p>The chart outlines a clear inflection point:</p>
<ul>
 <li>Hold $3.1K → Move toward $3.4K</li>
 <li>Break $3.4K → Ethereum enters “open sky”</li>
</ul>
<p>This term reflects an area of reduced overhead resistance, where price has historically accelerated. If buyers push through the $3.4K ceiling, the next significant liquidity zones sit much higher, potentially allowing Ethereum to regain levels seen earlier in the cycle.</p>
<p>The RSI breakout adds weight to this scenario. The indicator not only broke its downtrend but also did so with a clean retest, often a precursor to sustained strength.</p>
<h3 id="chart-structure-points-toward-rebound-potential">Chart Structure Points Toward Rebound Potential</h3>
<p>The chart shows Ethereum forming a base near $2.8K before reversing sharply and reclaiming short-term resistance. The descending trendline from the September high has now been breached, a structural development that typically ends a corrective phase.</p>
<p>Volume also stabilized during the decline and has begun to pick up during upward moves—another early tell that buyers are gaining control.</p>
<p>The blue projection arrow on the chart reflects a possible path toward $3.8K if the breakout holds. While not guaranteed, the pattern mirrors previous recovery setups where Ethereum used a rounded base to regain trend momentum.</p>
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<h3 id="conclusion-breakout-candle-could-be-close">Conclusion: Breakout Candle Could Be Close</h3>
<p>Ethereum is showing multiple aligned signals:</p>
<ul>
 <li>Momentum shift on RSI.</li>
 <li>Price compression above key support.</li>
 <li>Breakout of the major descending trendline.</li>
</ul>
<p>As long as Ethereum holds above the $3.1K support zone, the path toward $3.4K remains intact. A confirmed break above that level would place Ethereum into a low-resistance zone where the market tends to move quickly.</p>
<p>According to the analysis, the breakout candle is near, and the next few sessions may determine whether Ethereum extends its recovery phase into a full trend reversal.</p>
<p>The post <a href="https://www.ethnews.com/ethereums-momentum-turns-upward-is-a-breakout-the-next-step/" rel="noopener noreferrer nofollow">Ethereum’s Momentum Turns Upward – Is a Breakout the Next Step?</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Ethereum’s Momentum Turns Upward – Is a Breakout the Next Step?

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