Ethereum News Today: Ethereum Surges 0.77% Past $3,524 as RSI Bounce Signals Bullish Turn

Ethereum has shown renewed bullish momentum following a brief dip into a key buy zone, with technical indicators and price action suggesting continued upward potential. On August 2, the cryptocurrency surged 0.77% above $3,524, a level that corresponds to a significant 4-hour RSI bounce zone. This movement signals a potential reversal after a month of consolidation below $3,515. The RSI’s approach to the 30 level—typically seen as oversold—has historically led to rebounds, and this instance appears to be no exception. The price action also reflects the continuation of an ascending trendline established since May, with each major pullback occurring at higher levels [1].

Technical traders are closely watching the SuperTrend indicator, which remains bullish despite the recent dip. The price never closed below key support levels, and the clean bounce out of the buy zone reinforces the strength of this level. This pattern suggests to many that the pullback was temporary and does not signal a trend reversal. The stability in the volume profile during this consolidation phase further supports the idea that both institutional and retail participants are not panicking or exiting the market [1].

Fibonacci retracement levels are now playing a crucial role in shaping the next potential moves for Ethereum. The immediate resistance at $3,515.01 represents the 23.6% level, with $3,248.56 and $3,033.21 as the 38.2% and 50% levels, respectively. A clean close above $3,515 would strengthen the bullish case, with traders looking toward the $4,095.76 and $4,864.08 levels as possible targets. The $4,000 zone, a psychological barrier widely watched by investors, is the next major focus before the $4,750 and $5,500 levels come into play based on wave projections [1].

The broader chart structure since April suggests a developing cup pattern, with higher lows and a clear respect for a curved trendline. This pattern has been supported by the alignment of price and RSI momentum, offering a clear framework for traders to assess the next phase of the move. The critical level at $3,515 will determine whether this rally is a short-term bounce or the beginning of a more sustained upward trend [1].

Market sentiment has improved as Ethereum pushed above $3,730 and later $3,800, sparking optimism that the $4,000 level may be within reach. This upward movement has been supported by stable volume and a lack of panic selling, contrasting with earlier liquidation events that saw $15 billion wiped out in leveraged positions over a 48-hour period. The absence of cascading liquidations this time around suggests the market is becoming more resilient to short-term volatility [1].

Despite these positive signs, caution remains necessary. If Ethereum fails to hold above $3,515, the next line of defense would be the $3,374 level, which has previously acted as strong support. Traders are now looking for confirmation of a bullish continuation, particularly through a sustained break above the $4,000 zone. The current technical environment appears to favor a continuation of the upward trend, provided key resistance levels hold [1].

Source:

[1] title: Ethereum Eyes $4K Breakout as Price Moves Above $3,524 and RSI Turns

url: https://cryptonewsland.com/ethereum-4k-as-price-above-3524-and-rsi/