Ethereum Price Analysis: Bullish Momentum Amidst Resistance Levels

Ethereum has commenced this week with bullish momentum after rebounding from key support levels. Technical analysis indicates distinct bearishness overall, with critical resistance ahead. An ascending triangle breakout on the 4-hour chart validates the bullish move, while sentiment analysis reveals renewed institutional buying interest, urging the need for sustained premium levels to support ongoing price increases.

Ethereum has initiated the week with a significant upswing from existing support levels, catching short sellers unprepared and igniting a new phase of bullish momentum. Despite this, the cryptocurrency must still navigate several key resistance levels as it progresses.

On the daily chart, Ethereum (ETH) continues to display an overall bearish structure, trading significantly below the 200-day moving average, positioned near $2,800. Nevertheless, buying interest has emerged at the $1,550–$1,600 support range, facilitating a rebound towards the $1,800 mark. This signifies a temporary cessation in the bearish trend, with the next challenge positioned between $1,950 and $2,000. A breakout above this resistance could ascertain the legitimacy of the recovery.

Shifting focus to the 4-hour chart, ETH has successfully broken out of an ascending triangle formation, affirming a bullish breakout beyond the $1,700 threshold. This triangle pattern had been consolidating over the past weeks, with the breakout supported by vigorous bullish candles, enhancing confidence in the move. Following the breach, ETH quickly ascended to the $1,800 level, where immediate resistance now exists between $1,800 and $1,950. Holding above $1,700 is crucial; consequently, a retreat may serve as a retest and present opportunities for long positions. Conversely, failure to sustain that level risks trapping late buyers.

According to Edris Derakhshi from TradingRage, the Taker Buy Sell Ratio indicates a shift, with the Coinbase Premium Gap turning positive for the first time in weeks. This suggests a revival of buying interest from U.S.-based institutions, representing an encouraging sign that spot demand is rebounding. Additionally, a reduction in sell pressure, evidenced by the smaller red bars combined with a recent spike in green bars, correlates with the price recovery. To support elevated prices in the near future, enduring premium levels will be essential to confirm institutional interest and bolster further upward momentum.