Ethereum continues to rebound from four-month lows as technical indicators point to a possible continuation of the bullish trend.
Ethereum (ETH) is ending the week on a strong rebound, firmly above the $3,000 level, although it is already down about 1% in the past 24 hours.
The altcoin is up about 10.8% for the week, with today’s trading limited to a relatively narrow intraday range between $2,986 and $3,042. The consolidation near the highs of the recent move suggests continued buying interest, even as short-term traders begin to take profits around psychological resistance.
Notably, the second-largest cryptocurrency by market capitalization is down 5.9% in the past 14 days and more than 25% in the past 30 days. The latest price movements indicate that buyers are gradually regaining control after November’s volatility, but the levels of key resistance and support will determine whether this recovery extends or remains calm.
Where is Ethereum’s momentum distorted?
From a technical perspective, Ethereum’s daily chart shows that the market is trying to stabilize after a long period of downward trend. Price has rebounded from the lower Bollinger Band at $2,619 and is now close to the mid-band 20-day simple moving average at $3,094.
Ethereum
This mid-band is currently acting as the first major resistance level, limiting the continuation of the trend. Meanwhile, the upper Bollinger Band near $3,569 forms the next resistance area. managed by bulls It has clearly broken above the 20-day SMA.
On the downside, initial support is around the recent cluster of candlesticks just above the lower band, with stronger support for the band itself around $2,620. Also, reduced volatility may be on the brink. This is because wider bands often precede a “squeeze” phase where price consolidates before the next big directional move.
Elsewhere, the MACD indicator has just shown a bullish crossover, with the histogram moving into positive territory, indicating bearish momentum is fading and short-term buyers are gaining some traction.
A sustained move above the midband would open the door for a continued rally towards the upper band, while a rejection here could see ETH slide towards the lower support zone to retest the durability of this rebound.
Higher Ethereum time frame
On higher time frames, Ethereum’s structure appears to be much more constructive than the daily volatility indicates. trader tardigrade 2 month chart ETH is embedded in the large bullish pennant that has formed since its explosive rally from its 2020 lows.
This pattern is defined by movements that compress prices into a converging trendline, and is a typical consolidation after a strong “flagpole” rally.
According to the same analyst, ETH recently retested the upper bound of this formation from above, turning former resistance into support. If the price sustains above the upper trend line, it would confirm Tardigrade’s view of an “uptrend-only atmosphere” targeting levels like $7,500. To reach $7,500 from the current $3,023, Ethereum would need to surge approximately 148.1%.