Ethereum is trading at its highest levels since tardy July, hovering around $3,470. This marks a significant rebound for the second-largest cryptocurrency, which managed to stay above the key 200-day moving average (MA) at $2,965. By maintaining this level, Ethereum has confirmed its bullish price structure, paving the way for further momentum as it approaches its next milestone – yearly highs near $4,000.

Top analyst and investor Carl Runefelt recently shared his technical analysis on X, indicating that Ethereum’s price action has built a solid foundation for further growth. According to Runefelt, Ethereum is poised for a significant rally once it breaks above key resistance levels, signaling increased confidence among traders and investors.

This bullish sentiment is further fueled by Ethereum’s consistent on-chain activity and growing institutional interest, which continue to support its upward trajectory. However, breaking the $4,000 barrier will require Ethereum to overcome resistance zones that have caused declines in the past.

As ETH consolidates gains, market participants are closely watching for signs of another breakout that could set the tone for the rest of the year. Ethereum’s recent strength highlights its role as a market leader and at the forefront of broader cryptocurrency trends.

Ethereum is testing a key supply

Ethereum is testing a key supply zone just below the $3,500 level, a key resistance that could push the cryptocurrency to yearly highs in the coming days. This level has become a focal point for traders and investors as a break above it would likely signal a bullish continuation of Ethereum’s recent momentum.

Top analyst Carl Runefelt recently shared his insights on Xemphasizing the importance of this resistance. According to his technical analysis, once Ethereum breaks the $3,500 barrier, it could quickly rise to $3,700, potentially within hours. Market sentiment around Ethereum remains confident, and growing demand is a catalyst for further price increases.

Ethereum’s strength at this critical level is reigniting speculation about a possible alternate season. If ETH continues its upward trend and attracts more capital, it could pave the way for other altcoins to follow suit. Historically, Ethereum’s price action has been a leading indicator of broader market movements, and this time appears to be no different.

As ETH approaches this key moment, all eyes are on its ability to maintain its upward momentum. A robust rally above $3,500 would confirm the bullish structure and set the stage for Ethereum to dominate the market narrative in the coming weeks.

Key levels to watch

Ethereum is trading at $3,470, hovering below the key resistance level at $3,500. This local high has become a key area of ​​interest for traders and analysts, as a break through it could set the stage for a significant rally. If Ethereum manages to break through this resistance with strength, it could trigger a breakout that pushes the price towards $3,900 within a few days.

However, the market remains cautious about the potential risks associated with this key moment. A failed breakout at $3,500 could lead to sideways consolidation as Ethereum looks for stronger buying pressure to resume its upward momentum. In a more bearish scenario, there could be a significant correction that brings ETH back to lower levels to establish a more solid base of support.

The current price action highlights the importance of this resistance zone. A neat break above $3,500 would likely confirm Ethereum’s bullish structure and enhance confidence in the uptrend continuing.

On the other hand, any swings or rejections at this level could signal the need for further consolidation before the next significant move. As ETH approaches this critical moment, the market is watching closely to determine the next direction and potential ramifications for the broader cryptocurrency landscape.

Featured image from Dall-E, chart from TradingView