Ethereum Teeters at Make-or-Break Resistance as Bullish Signals Flash Green

Ethereum's price action is painting a rare technical picture—one that has traders scrambling to adjust their positions. The second-largest cryptocurrency is testing a critical resistance level while multiple bullish indicators converge. This isn't just another fakeout; the charts are screaming 'breakout potential.'

### The Bullish Trinity: Three Signals You Can't Ignore

RSI divergence, rising volume, and a tightening Bollinger Band squeeze—these aren't your grandma's tea leaves. When these align, markets tend to move. Hard.

### Wall Street's Watching (And Probably Getting It Wrong)

Traditional finance analysts are still calling it a 'speculative asset' while quietly increasing their ETH exposure. The irony? Their own clients will be the last to know when the real rally starts.

One thing's certain: if Ethereum punches through this resistance, the shorts will get vaporized faster than a DeFi rug pull. Buckle up.

Rare Technical Alignment Ignites Rally

In a video update on August 12, Kevin revisited his May forecast for an “ETH season” — a period in which Ethereum outperforms Bitcoin and drives broader altcoin gains. At that time, sentiment toward ETH was deeply bearish, with many traders sidelined. But Kevin identified a unique setup across multiple timeframes, drawing from the ETH/USD, ETH dominance, and ETH/BTC monthly charts.

“We were probably the first people flashing these warning signals on ETH… it was so blatant and so obvious… something historical,” Kevin said. Since his call, ETH has surged more than 150%, while related projects like Chainlink (LINK), Uniswap (UNI), and Ethereum Classic (ETC) have recorded triple-digit percentage gains from their cycle lows.

The rally, Kevin explained, began with a rare monthly demand candle at a major support level — a technical formation that in past cycles has preceded massive multi-month rallies. This was followed by multiple momentum indicators reversing from extreme oversold levels, signaling a possible macro bottom.

Indicators Show Strong Uptrend Potential

One of the standout signals was the monthly Stock RSI, which displayed what Kevin described as an unprecedented “V-shaped turnaround.” This suggested that selling momentum had been fully exhausted and buying pressure was beginning to dominate.

Meanwhile, the MACD histogram — a key momentum tool — had been tightening since late 2019. Kevin pointed out that Ethereum’s monthly MACD line has now crossed above the signal line right at the zero level, a point he framed as the ignition stage for a sustained bullish breakout.

Adding to the conviction was the whale money FLOW indicator, which reversed from the lowest readings in Ethereum’s recorded history. This reversal indicates that large holders, often referred to as “whales,” have shifted from distributing ETH to accumulating it — a historically bullish development.

ETH Dominance and ETH/BTC Charts Align

Kevin emphasized that this bullish alignment wasn’t limited to the ETH/USD chart. On the ETH dominance chart — which measures Ethereum’s share of the total crypto market — he saw the same multi-indicator setup: oversold RSI and Stock RSI levels, a pending MACD bullish cross, and price rebounding from key long-term support. He compared this level to the base that supported the 2019–2020 bull cycle, suggesting that Ethereum may be entering another extended phase of outperformance.

The ETH/BTC chart told a similar story. Kevin argued that Ethereum has likely already bottomed against Bitcoin, setting the stage for a potential period where ETH leads altcoin gains. “The lead altcoin showed the way… the bottom is obviously in,” he stated.

The Final Hurdle: All-Time High Resistance

Despite the overwhelmingly bullish technical backdrop, Kevin urged caution. Ethereum is still trading below its previous all-time high of around $4,850, a level he calls a “four-year major historical resistance.”

“We’re not in the clear… don’t be buying into four-year major historical resistance levels. That’s never smart. That will get you hurt,” he warned. Kevin noted that this resistance is not only a psychological barrier but also a key zone where many long-term holders might take profits, creating significant selling pressure.

He extended this caution to the broader altcoin market by referencing the Total 2 market cap chart — which measures the combined value of all cryptocurrencies excluding Bitcoin. Here, he identified the $1.71–$1.72 trillion range as the “last major line in the sand.” Until both Ethereum and the broader altcoin market break above these thresholds with strong volume on higher time frames, he sees the market as being in a high-risk, high-reward zone.

Outlook for Ethereum and Altcoins

If Ethereum can decisively clear the $4,850 level, Kevin believes it could enter open price discovery, where there is no historical resistance to cap upside potential. This WOULD not only benefit ETH holders but could also trigger a renewed surge across the altcoin sector.

However, he cautioned that failure to break resistance could lead to a prolonged consolidation period or even a corrective pullback — especially if macroeconomic factors, such as interest rate decisions or broader risk-off sentiment in global markets, dampen investor appetite for risk assets.

For traders, Kevin’s analysis underscores the importance of balancing Optimism with discipline. While the technical setup is unusually bullish, history shows that major resistance zones often require multiple attempts before being broken. Monitoring volume trends, whale accumulation, and macroeconomic signals will be key in determining whether Ethereum’s once-in-a-decade signal evolves into a full-blown breakout or stalls at the final hurdle.