Comprehensive Analysis: Ethereum’s Resilience and Potential Breakout
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Ethereum Demonstrates Strong Performance Amidst Consolidation
On July 7, a prominent crypto analyst highlighted Ethereum’s continued strength on the daily chart. Despite a phase of consolidation, Ethereum (ETH) is holding firm above a crucial support level, maintaining its higher-low structure. If this range holds, Ethereum could be poised for further upward movement.
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Ethereum’s Key Support and Resistance Levels
In a recent post on X, analyst Believer indicated that Ethereum has successfully reclaimed a significant Fibonacci support level at $2,572. The current trajectory sees ETH moving toward a resistance zone, with an immediate goal of transforming $2,605 into a new support level. Achieving this would confirm short-term bullish momentum and pave the way towards the next resistance at $2,665.
Technically, indicators are beginning to shift in favor of the bulls. The Relative Strength Index (RSI) is at 55.73, and the Moving Average Convergence Divergence (MACD) has crossed into positive territory, indicating building upward momentum. Key support and resistance levels stand at $2,503, $2,605, $2,665, and $2,759, respectively. Believer suggests that breaking the resistance above $2,665 could open the door to more significant gains.
Potential Breakout Scenarios and Risk Considerations
Another analyst, Crypto Bureau XLab, has analyzed Ethereum’s movement and suggests that ETH is preparing for a breakout from an ascending triangle pattern on the 4-hour chart. A confirmed breakout above $2,720 could trigger a robust rally towards the $3,150 region, driven by building momentum, which is typically seen in bullish continuation patterns.
However, there is a cautionary note: if ETH fails to clear the $2,720 barrier, it might lose its short-term bullish momentum, potentially retracing back to the $2,100 to $2,000 support zone, a historically strong accumulation area.
Ethereum’s Path to $4,000: Analyzing the Breakout Potential
Crypto analyst Jaibrah also provided insights on X, suggesting that Ethereum is gearing up for a substantial breakout, with a notable cup and handle pattern forming on the 3-day chart—a bullish pattern that often signals significant upward movements.
Ethereum is currently supported by the Exponential Moving Average (EMA) ribbons, indicating a robust uptrend. A confirmed breakout above $2,850 could set a price target of $4,000. Additionally, Ethereum is experiencing a Bollinger Band Width squeeze, a reliable indicator of impending volatility expansion, often leading to sharp directional price moves.
The Volume Range Visible Profile (VRVP) shows a significant volume gap between $2,850 and $3,200, suggesting minimal resistance in this price range. If Ethereum can break above $2,850, it may rapidly climb to $3,200 with little resistance.
At present, Ethereum is trading at $2,563 on the daily chart.
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