Ethereum has broken above the $2.7K resistance zone and now trades near $2.73K, opening a path toward the $3K level. Momentum indicators show the rally cooling from overbought levels, while futures positioning has yet to confirm the move.
Ethereum has extended its recovery from the September lows and is now trading around $2.73K after slightly breaking above the $2.7K resistance area. The move has strengthened the short-term structure, but ETH is approaching another major resistance zone, and momentum might be beginning to cool from its recent highs.
Daily chart shows a strengthening structure
The daily chart shows a clear structural improvement following the sharp recovery from the $1.5K area. ETH subsequently reclaimed the $1.9K region and then broke above the $2.1K resistance zone with substantial force.
The breakout accelerated in August, pushing ETH above both the 100-day and 200-day moving averages. These moving averages are now converging rapidly, which could lead to a potential bullish crossover around $2K. Still, a complete long-term trend reversal would require ETH to trade above the higher resistance levels.
Holding above the $2.7K zone could open the way toward the next major resistance around $3.0K, a level that is also an important psychological threshold. On the downside, the former $2.7K resistance area could now act as initial support if the breakout holds, followed by the $2.5K consolidation region and the $2.1K support area.
Shorter-term chart shows hesitation near $2.8K
The 4-hour chart offers a clearer view of the latest breakout. ETH spent much of September consolidating between roughly $2.4K and $2.7K before breaking higher over recent sessions. The latest candles show some hesitation after ETH briefly pushed toward $2.8K, consistent with profit-taking rather than an immediate reversal.
Holding above $2.7K and completing a pullback would preserve the breakout structure and could allow an attempt toward $3K. A sustained move back below $2.7K, however, would weaken the breakout and increase the possibility of a deeper retracement toward the $2.45K bullish order block.
The 4-hour RSI has risen into the upper portion of its range following the breakout but has already pulled back from an overbought state, indicating that momentum remains constructive while the market has become less stretched after the initial surge.
Futures positioning has yet to confirm the rally
The Ethereum Taker Buy Sell Ratio's 30-day average currently sits around 0.99, meaning aggressive taker selling has exceeded aggressive taker buying over the measured period. Yet ETH has continued to appreciate despite the ratio staying below 1, so the latest rebound has not been accompanied by a clear dominance of aggressive buying on this metric.
That 30-day average has also been declining from significantly higher levels seen around April and July, even as ETH moved sharply higher from the $1.8K area toward $2.7K. This divergence suggests the rally has not yet been confirmed by a sustained improvement in taker-buying dominance.
A sustained move in the ratio back above 1 would provide stronger confirmation that aggressive futures buyers are gaining control. Continued readings below 1 while ETH trades near resistance, on the other hand, could leave the breakout vulnerable to a period of consolidation or correction.
Source: CryptoPotato
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