ethereum has made headlines after experiencing a break above the $3,700 level, a key resistance zone that previously limited its bullish momentum. This milestone marks a major turning point as the price continues to advance towards new yearly highs. Following the breakout, ethereum pulled back to test $3,700 as support, solidifying this level as a potential launching pad for future price action.
Top crypto analyst Jelle shared a detailed technical analysis on x, highlighting ethereum's breakout from a multi-year bullish pennant pattern. According to Jelle, this pattern has formed since 2021 and represents a long-term consolidation phase. The successful breakout and retest of the pennant indicates strong bullish momentum, setting the stage for significant gains in the coming months.
ethereum's price movements align with growing optimism in the broader market, as bitcoin's rally inspires renewed interest in altcoins. Now that eth is above crucial technical levels, investors are increasingly confident in its potential to continue rising. However, as market volatility persists, ethereum's ability to stay above $3,700 will be critical in determining the strength of this uptrend.
ethereum bullish trend confirmed
ethereum price action has confirmed a bullish outlook for the coming months as it breaks and holds above key resistance levels, indicating that a new uptrend may be underway. After years of consolidation, eth finally tested its yearly highs and maintained a strong bullish price structure. This is a positive sign for investors, who are increasingly confident in ethereum's long-term potential.
Top crypto analyst Jelle recently <a target="_blank" href="https://x.com/CryptoJelleNL/status/1866764587993010260″ target=”_blank” rel=”noopener nofollow”>shared a technical analysis on xhighlighting ethereum's breakout of a multi-year bullish pennant pattern. This pennant has been building for years and the recent breakout marks a crucial shift in market sentiment. eth not only surpassed the pattern but also successfully retested it, confirming the strength of the bullish movement.
According to Jelle, “When eth trends, it trends,” and this statement reflects the potential for significant upward momentum if eth maintains its current trajectory. The new successful test suggests that the bulls are in control and eth could see a prolonged rally in the coming months, surpassing previous highs.
The optimism surrounding ethereum is backed by strong technical data, and many investors see this breakout as the start of a strong trend. The probability of further gains increases as ethereum stays above key levels. The coming months will be critical for eth, and market participants are eagerly awaiting confirmation that this bullish trend can sustain as the price continues its upward march.
Key support to maintain price
ethereum is trading at $3,700, holding strong above this crucial support level. This price is vital to maintain momentum and ensure that the uptrend remains intact. ethereum is expected to surpass yearly highs to continue rising. A successful break above these levels would indicate continued strength and could lead to an extended rally as eth enters new price discovery territory.
However, ethereum could face a pullback to areas of lower demand if it fails to break the yearly highs and loses support around the $3,700 level. In this case, the key levels to watch would be the following support areas, which could provide the necessary foundation for a possible recovery. A failed breakout would likely indicate that the market needs further consolidation before continuing its uptrend.
For now, the bulls want confirmation that eth can maintain its position above $3,700 and overcome the resistance. If this happens, ethereum could continue its strong bullish momentum in the coming months. On the other hand, if the price falls below this key support, investors will need to reevaluate ethereum's near-term prospects.
Featured image of Dall-E, TradingView chart
