Ethereum Consolidates Below Key Resistance Awaiting Breakout

Ethereum (ETH) has recently entered a strategic pause, characterized by a well-defined bullish structure with a series of Higher Highs (HH) and Higher Lows (HL), indicating upward momentum. However, after this upward trend, ETH has now entered an accumulation phase just below a key resistance zone, suggesting that the market is consolidating before its next potential breakout.

According to the analysis, Ethereum is currently navigating a crucial technical juncture as it retests the confluence zone of the 50 EMA and 100 EMA, a region that has historically served as a strong area of demand. This overlap of exponential moving averages often acts as dynamic support, and its relevance is further underscored by the Stochastic RSI rebounding from oversold territory, which may signal an incoming shift in momentum.

The analyst suggests that if ETH manages to hold this accumulation zone and support provided by the EMAs, it might open the door to another test of the overhead resistance zone, or potentially, a breakout beyond it. Traders will likely look for volume confirmation and continuation patterns to validate any such upside move. On the other hand, a failure to sustain this zone may signal weakness and lead to a deeper pullback, possibly dragging Ethereum toward lower support levels that have previously acted as stabilization zones. This would mark a temporary shift in market structure and attract more selling pressure in the short term.

For now, this area remains a critical decision point. The coming price action will be instrumental in shaping Ethereum’s next directional move, and traders should closely monitor whether bulls can defend the EMAs or bears regain control and force a breakdown.

In the event of a confirmed breakout above the current accumulation zone and EMA confluence, Ethereum could be poised for a strong upward continuation. The first major level to monitor, which serves as the breakout trigger point, is the immediate $2,858 resistance zone that has capped recent advances. A clean move above this area, especially with rising volume, would signal strong bullish intent. Once that resistance is cleared, the next key price level to watch lies near the $3,360–$3,659 range, which previously acted as a short-term supply zone and could present minor friction. Pushing beyond that could target the psychological zone around $4,100. If momentum accelerates, $4,863 may act as the next potential upside target.