Ethereum Surges 20% in Two Days, Eyes $3,000 Breakout

Ethereum's price has experienced a dynamic shift, briefly retesting a crucial resistance line before entering a consolidation phase. After failing to retest this line as support, Ethereum reaccumulated above $2,300. The price has since shown signs of breaking out, following a steady surge in the past few days.

Last month, Ethereum experienced a significant breakout, reaching the $2,800 level in the second week. However, buying momentum cooled off after several failed attempts to push higher. This led to a sideways trend, with the price staying well above the $2,300 level and consolidating throughout the month. Despite an attempted breakdown this month, the price quickly recovered due to increased volatility, positioning itself for a potential breakout on the daily chart.

The recent surge over the last two days has made the price appear strong, suggesting that Ethereum is ready for another major rally. A notable breakout from the consolidation phase could propel the price well above the $3,000 level. Technically, Ethereum is expected to retest the broken resistance line as support during the recent market correction. With the correction now suspended, a major impulsive movement is anticipated soon.

Currently, the bulls are back in action, and it seems likely that they will gain more dominance in the coming days. Key resistance levels to watch for a test are $3,213, $3,525, and $3,744. If the price breaks well above $2,800, the next buying target would be $3,000 and $3,213. For a pullback, there is close support at $2,548. If the price drops below this level, the next support levels to watch are $2,320, $2,104, and $1,873 to retest the descending resistance line.

The current spot price of Ethereum is $2,783, with a bullish trend and high volatility. It is important to note that this analysis is not trading or investment advice, and thorough research should be conducted before buying any cryptocurrency or investing in any services.