Ethereum (ETH) has surged above $2,500, now testing a critical supply level that could trigger a massive rally in both ETH and altcoins.

After several days of anxiety and uncertainty, yesterday’s market rally has reignited optimism in the crypto space. Investors and traders are closely watching Ethereum price action as a break above this key zone could signal the start of a significant uptrend, potentially setting the stage for an alternative season.

Leading analysts and investors are waiting for confirmation that ETH will see growth soon. Carl Runefelt, a renowned analyst and investor, shared his technical analysis on Ethereum, suggesting that the long-awaited rally may be just around the corner.

According to Runefelt, a breakout of ETH from its current supply zone could lead to a significant price enhance, attracting upward momentum for Ethereum and the broader range of altcoins.

The next few days are critical for Ethereum’s price action as the market waits for signals that could determine the direction of a potential upside. Investors remain hopeful, expecting that ETH can lead the market into another vital phase of growth.

Ethereum is testing a key supply

Since the beginning of August, Ethereum has been in a bullish triangle formation and the moment of truth for a potential breakout may be close.

ETH has underperformed BTC throughout the year, which has caused many investors and traders to question ETH’s strength in this cycle. This trend led to a shift in confidence as Bitcoin continued to dominate, leaving Ethereum behind.

However, during yesterday’s market pump, Ethereum showed renewed strength, outperforming Bitcoin for the first time in some time, signaling a possible shift in market dynamics.

Prominent cryptocurrency analyst Carl Runefelt recently shared technical analysis on Xhighlighting Ethereum’s imminent breakout from its bullish triangle pattern.

According to Runefelt, Ethereum is approaching a key moment, and a break from this pattern could lead to stern increases. He suggests that once ETH breaks through, the next target supply zone will be around $3,400, which is a significant upward move from current levels.

This hopeful outlook comes from renewed positive market sentiment and improved Ethereum price action. Traders and investors are closely watching the next few days as a successful breakout could mark the beginning of Ethereum’s long-awaited bullish trend and re-establish its strength against Bitcoin.

ETH technical levels to watch

Ethereum is trading at $2,611 after yesterday’s notable 7% enhance. This upward momentum has allowed the price to break above the $2,500 mark, a critical resistance level that has been driving the price lower since early October.

Currently, Ethereum is less than 8% off its 200-day exponential moving average (EMA), which is currently at $2,806.

For the bulls to take control and establish a sustained uptrend, ETH needs to regain this 200-day EMA and close above the $2,800 level. Such action would signal a continuation of the bullish momentum and set the stage for a potential rally towards higher price levels.

On the other hand, if Ethereum fails to hold above the $2,500 support level, a deeper correction could be on the horizon. In this case, the price could return to $2,300, where more demand could support stabilize the market.

The next few days will be crucial for Ethereum as traders and investors closely watch whether the price can maintain its recent gains and break through key resistance levels.

Featured image from Dall-E, chart from TradingView