Ethereum News Today: Ethereum Surpasses $3,538 as RSI Signals Bounce from $3,248 Support

Ethereum (ETH) has regained key price territory above $3,538 following a sharp rebound from critical support levels, including $3,248 and $3,033. The recovery comes on strong upward momentum after ETH tested multi-month lows near $2,855 in mid-August 2025. Technical indicators, particularly the Relative Strength Index (RSI), show signs of a potential reversal on the 4-hour chart, as the oscillator breaks free from a descending trendline and stabilizes at 46.08, suggesting strengthening buyer interest [1].

Traders and analysts are closely monitoring Fibonacci retracement levels, which remain central to the market structure. ETH has bounced off the 0.236 Fibonacci level near $3,515 and is now testing the 0.382 level at $3,248. A sustained hold above this level could provide further upside toward $3,515, with the ultimate target being $4,200 and potentially $4,864 if the bullish momentum continues [1].

The broader trend shows Ethereum breaking out of a months-long consolidation phase in early July, confirming a significant breakout above $3,095.75. This move aligns with an ascending curve drawn from the April lows, reinforcing a bullish trend structure. Meanwhile, a previous downtrend defined by a descending blue trendline has been invalidated, highlighting a potential shift in market sentiment [1].

TommyJR, a widely followed crypto trader, shared a chart on X (formerly Twitter) indicating that Ethereum is closely tracking Fibonacci levels and showing signs of a strong continuation. He stated, “$ETH bang on → now close to bouncy RSI levels (4h),” highlighting the importance of the RSI forming a bullish divergence, which is often a precursor to price reversals in cryptocurrency markets [1].

On-chain activity suggests that institutional inflows may return as ETH approaches key Fibonacci extensions. The $4,200 and $4,864 levels are seen as primary targets if the current bullish momentum holds. A speculative curved trendline, respected since mid-May, further supports this upward trajectory, intersecting with Fibonacci levels near $3,000 and reinforcing the significance of the $3,248 and $3,033 support zones [1].

Social sentiment among traders remains mixed, with some expressing concern over a potential drop toward $2,900. However, many maintain a bullish outlook if the key Fibonacci and RSI levels hold. The chart, which has garnered over 5,500 views, suggests a possible extension toward $4,864, a psychological and technical target for the asset. Maintaining strong buying volume will be critical in reaching this threshold [1].

Volume indicators remain neutral, signaling that the market is waiting for further confirmation. If Ethereum fails to hold above $3,248, a retest of $3,033 or even $2,855 could occur. However, the recent short-term recovery to $3,600 has already generated optimism for further upside. The next 48–72 hours are expected to be pivotal in determining whether the current bullish setup is validated [1].

Source: [1] Ethereum Reclaims $3,538 as RSI Signals Bounce from $3,248 Support (https://cryptonewsland.com/ethereum-3538-as-rsi-signals-from-3248/)