Ethereum broke out of a multi-week consolidation and now trades near $2.4K after reclaiming a months-long descending trendline. Short liquidations have jumped alongside the move, but daily and four-hour RSI readings are deep in overbought territory, raising the odds of a near-term pullback before any push toward $3K.
Ethereum has staged a sharp breakout from its multi-week consolidation, with ETH now trading around $2.4K after reclaiming the descending trendline that had capped its recovery. The move is backed by a strong acceleration in momentum and a rise in short liquidations, though a sharp RSI increase points to a possible near-term pullback.
Daily chart clears a months-long trendline
On the daily chart, ETH has decisively broken above the descending trendline that had capped price for months, after forming higher lows from the June bottom near $1.5K. The latest surge carried ETH into the $2.1K resistance level, with price now testing the $2.4K supply zone. A sustained daily close above that zone could open the way toward $3K.
On the downside, the former breakout area near $2.1K is now the first major support zone, with $1.8K as a secondary support and $1.5K as the deeper structural floor. The daily RSI has jumped above 75, running deep into overbought territory, which raises the probability of consolidation or a retest before another leg higher.
Four-hour chart shows a near-vertical move
The four-hour chart shows an even clearer picture: ETH broke above a short-term ascending channel and the $2.1K resistance zone, then advanced almost vertically toward $2.4K. That zone is the key level to watch on any retracement, and a successful retest as support would confirm the breakout. At the same time, the four-hour RSI has surged above 80, moving sideways in that region, which shows how stretched the immediate move has become.
Short liquidations point to a squeeze
Short liquidations have risen sharply toward roughly 28K on the latest spike, suggesting the move above $2K has forced bearish positions to close and added a short squeeze component to the rally. Still, that spike remains below earlier liquidation events above 40K and 50K, so the current squeeze has not reached the most extreme levels seen in prior Ethereum rallies. The breakout structure stays constructive as long as ETH holds the $2K-$2.1K area.
Source: CryptoPotato
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