Ethereum is exhibiting early signs of a bullish recovery after breaking a falling wedge pattern near $1,800. Key resistance stands at $2,143, with long-term targets stretching to $3,200-$4,000. A Golden Cross and whale accumulation suggest growing confidence in further price movements. A successful hold above $2,143 could indicate more potential for gains, while strong support levels are identified below.
Ethereum (ETH) is stirring interest as it shows signs of a potential bullish trend reversal. Recently, it broke through a multi-month falling wedge pattern around the $1,800 mark, currently trading close to $1,820. Analysts are closely observing this move, as reclaiming key levels may spark a significant upwards rally for the cryptocurrency.
The breakout from the falling wedge, which had begun back in January 2025, tends to signal a switch from bearish to bullish momentum. Analysts are feeling a little more optimistic following this breakout, as additional signals, like the Golden Cross and rising MACD, bolster the argument for short-term positivity in Ethereum’s price action.
Delving into the technical side, the ETH chart displays a successful breakout from the wedge at around $1,790 to $1,800. Market experts have noted an accompanying surge in volume and momentum, with moving averages converging near the crucial $1,820 level. This convergence could indicate the potential for more momentum upwards.
As for resistance levels, immediate barriers can be found at $1,857 and then at $2,143. If Ethereum can close above the $2,143 line, it could pave the way for gains towards $2,500 to $2,700. However, the cryptocurrency has a robust support zone sitting at $1,680, with further backups around $1,542 and $1,328 should things turn south.
Adding to the bullish scenario, Ethereum has recently exhibited a Golden Cross—where the 50-day moving average crosses above the 200-day moving average. Historically, this configuration tends to precede significant price gains. In addition, a potential Bull Flag is forming on the weekly chart, suggesting that ETH might be primed for a breakout in the near future.
On-chain data suggests notable whale activity, revealing that wallets holding between 1,000 to 10,000 ETH have reached a 20-month high of 5,460 wallets. This consolidation indicates accumulation often seen at the start of bullish cycles, presenting a positive signal for Ethereum’s trajectory.
Funding rates present another optimistic perspective. Current data shows ETH perpetual contracts displaying decent funding rates, around 0.05% per hour across leading exchanges like Binance and OKX. The trend sees long-position traders compensating short-position traders—an inclination that typically occurs in bullish environments.
In summary, the recent breakout from a falling wedge, coupled with a bullish Golden Cross and positive funding rates, paints an encouraging technical picture for Ethereum. However, it’s crucial for ETH to successfully reclaim the $2,143 level for any significant breakout to hold up. Investors should remain vigilant about trading volumes, whale transaction activity, and derivative market trends as they navigate this developing situation.
