Ethereum Primed for Breakout – Bulls Eye Key Resistance Zone for Next Leg Up

Ethereum's price action flashes bullish signals as it consolidates near a critical resistance level. Traders are betting big on an imminent upside explosion—if ETH can decisively clear this make-or-break zone.

The Setup: After weathering last month's market turbulence, ETH now coils like a spring below its recent highs. The 50-day moving average has flipped to support, and on-chain data shows whales accumulating at these levels.

Technical Tailwinds: The daily chart paints a clear picture—higher lows since the June bottom, with RSI holding above 50. A weekly close above $3,800 could trigger algorithmic buying from quant funds (those same funds that panic-sold three weeks ago).

Market Sentiment: Options traders are loading up on September calls, while DeFi's TVL creep suggests smart money is positioning for an ETH-led altseason. Never mind that most of these 'institutional inflows' are just hedge funds recycling the same capital for PR.

The path of least resistance points north—but in crypto, even sure bets come with an asterisk. Watch for a decisive breakout with volume, or prepare for another round of 'max pain' chop.

Ethereum Price Aims Higher

Ethereum price started a fresh increase from the $3,540 support zone, beating Bitcoin. ETH price was able to recover above the $3,550 and $3,580 resistance levels.

The bulls even pushed the price above the $3,700 resistance zone. However, the bears remained active near the $3,750 zone. A high was formed at $3,733 and the price corrected some gains. There was a MOVE below the $3,620 level.

The price tested the 50% Fib retracement level of the upward move from the $3,350 swing low to the $3,733 high. ETH is again rising above $3,600. There was a break above a bearish trend line with resistance at $3,625 on the hourly chart of ETH/USD.

Ethereum price is now trading above $3,600 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $3,700 level. The next key resistance is near the $3,720 level.

The first major resistance is near the $3,750 level. A clear move above the $3,750 resistance might send the price toward the $3,820 resistance. An upside break above the $3,820 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,000 resistance zone or even $4,120 in the near term.

Are Dips Supported In ETH?

If ethereum fails to clear the $3,720 resistance, it could start a fresh decline. Initial support on the downside is near the $3,620 level. The first major support sits near the $3,580 zone.

A clear move below the $3,580 support might push the price toward the $3,540 support. Any more losses might send the price toward the $3,440 support level in the near term. The next key support sits at $3,350.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,540

Major Resistance Level – $3,750