Ethereum News Today: Ethereum Surges 2% as Pump.fun Bounces 16% on Technical Breakout

The cryptocurrency market has demonstrated renewed upside momentum following a recent pullback, with Ethereum (ETH) rebounding over 2% and reclaiming the $3,700 level. This shift in sentiment is fueling optimism for major memecoins, including Pump.fun (PUMP), which has surged 16% in the past 24 hours after a challenging week, according to Coinmarketcap. The price action suggests a potential continuation of the rally, driven by a classic bullish breakout pattern.

PUMP’s 2-hour chart reveals a key technical development: a falling wedge pattern, typically signaling the end of a downtrend and the onset of a bullish reversal. The asset found critical support near $0.0023 before breaking through the $0.0028 resistance level, a move that validates the pattern’s reliability. At current prices near $0.002875, PUMP is trading just below its 50-period moving average (50 MA), indicating early signs of recovery and upward momentum [1].

A confirmed breakout above the 50 MA at $0.003059 could propel PUMP toward the next resistance level near $0.0040, representing a potential 38% gain from its current price. However, traders are advised to monitor for a possible retest of the breakout zone, a common occurrence in such setups, before the next significant upward movement. The pattern’s integrity remains crucial, as a failure to hold above $0.0028 could invalidate the bullish case and trigger a retracement [2].

The falling wedge breakout is supported by broader market dynamics. Ethereum’s resilience and the overall memecoin sector’s responsiveness to risk-on sentiment underscore the favorable environment for PUMP. While the cryptocurrency’s short-term trajectory hinges on maintaining key levels, the technical setup aligns with a broader narrative of market consolidation and renewed speculative interest. Analysts caution that volatility remains inherent to the sector, emphasizing the importance of risk management despite the promising signals [3].

Source:

[1] [PUMP To Soar Higher? – Key Breakout Signaling Potential Upside Move] [https://coinmarketcap.com/community/articles/6885229f5f41311c4c04fe5e/]

[2] [PUMP 2H Chart] [https://coinmarketcap.com/community/articles/6885229f5f41311c4c04fe5e/]

[3] [PUMP To Soar Higher? – Key Breakout Signaling Potential Upside Move] [https://coinmarketcap.com/community/articles/6885229f5f41311c4c04fe5e/]