1. Ethereum shows signs of stabilization after a prolonged correction, with short-term buyers stepping in.
2. Critical resistance around $3,050–$3,100 must be cleared to confirm a bullish breakout.
3. Next target for ETH lies near $3,650–$3,700 if upside momentum continues.

Ethereum (ETH) appears to be preparing for a potential upside breakout after months of consolidation and corrective price action. Analyst Michaël van de Poppe highlighted that repeated tests of key resistance increase the likelihood of a bullish move.

On lower timeframes, ETH is forming higher lows, indicating buyers are entering at progressively higher levels. This short-term structure suggests growing bullish pressure, even though the broader market remains in a corrective phase.

Its price had been falling for a long time after it reached a level above $4,000-$4,400. It made lower highs and lower lows, all below the falling moving average that served as a level of resistance. Its price became stable when it reached the large demand area of $2,400-$2,630. This area has been known for its strong buying, indicating that the long-term buyers are protecting this level of support.

Risk of Pullback Toward Rising Trendline and Lower Support

The current range for Ethereum is at $2,990 to $3,000, holding positions just above the 9-day TEMA at $2,958, which has become immediate support. To move further, the region around $3,050 to $3,100 will act as major resistance, as this area has been previously noted for consolidation and breakdown levels. If breached, ETH will move down towards the rising support line or $2,630 to $2,400 support.

RSI indicators have a mixed but encouraging outlook. RSI values are approximately 46-47, reflecting less selling pressure on it. MACD histogram values are decreasing close to zero, reflecting an opportunity for a bullish cross if purchase pressure holds on. Historical volatility measures approximately 47, reflecting that ETH may be preparing to move in a particular direction and not be range-bound.

Ethereum Daily Close Above $3,100 Signals Upside Breakout Zone

Traders will also be looking for a break above $3,100 for Ethereum, which could see it rise towards the levels of $3,650-$3,700, a region that was previously a zone of support but is now a zone of resistance. A return above the declining moving average will increase the strength of the positive case. Alternatively, if it can’t remain above $2,950-$2,900, it could fall towards the levels of $2,700-$2,800.

Also Read: Ethereum ETFs Reverse Weekly Outflows While XRP Funds Post Strong Gains