Ethereum (ETH) is trading above $2,600 after a 5% pullback from local highs around $2,750. ETH has maintained an upward trajectory over the past two weeks, sparking optimism in the market as investors look for further signs of strength in price action.

Top analyst and investor Carl Runefelt recently shared a technical analysis highlighting that Ethereum has broken out of the bullish pattern that began to form in early August. According to Runefelt, once ETH confirms solid demand at current levels, it will only be a matter of days for another rally to begin.

As momentum gains in the broader cryptocurrency market, Ethereum is poised to continue its climb, with investors closely watching confirmation of support at this key level. If ETH holds, the next move up could be targeting higher price zones, deepening bullish sentiment. The coming days will determine whether Ethereum will be able to resume its upward trend and capitalize on the market’s continued strength.

Ethereum exceeds $2,600

Ethereum has underperformed compared to Bitcoin this year, leaving many investors concerned as another bull market looms. While Bitcoin rose, Ethereum struggled to rise with the same strength. This caused concern among ETH holders, who expected the second-largest cryptocurrency by market capitalization to lead the way.

Most recently top analyst Carl Runefelt shared a compelling analysis on X. The analysis includes a price chart that shows Ethereum breaking out of a symmetrical triangle on the daily time frame – a classic bullish pattern.

Runefelt’s analysis shows that if the price action continues, the price of ETH could rise to $3,400. This breakout is a key signal for Ethereum, but its durability depends on whether the price can successfully retest the upper triangle line that previously acted as resistance.

Ethereum is currently testing support at this critical level, with $2,600 being the limit. A close below $2,600 would invalidate the bullish symmetrical triangle thesis and could lead to further declines, casting doubt on optimism about ETH’s future price action.

However, if Ethereum holds above this level, it could mean the breakout remains intact, setting the stage for a forceful rally as the broader market prepares for a bull run. The coming days will be crucial for ETH’s trajectory.

Price Action: Technical Levels to Watch

Ethereum is trading at $2,620 after failing to reclaim its 200-day exponential moving average (EMA) at $2,795. The price is testing support around the key $2,600 level, which will determine the direction of ETH’s price action in the coming days.

If Ethereum holds above this level, the next target will be again above the 1D 200 EMA at $2,800. This is a key price zone as it coincides with the local ETH high set at $2,820 in overdue August.

A successful break above $2,800 would signal a forceful bullish continuation, which would mean an inevitable move towards higher levels. However, if ETH fails to consolidate above $2,600, the risk of a pullback to lower demand zones becomes increasingly likely.

Traders and investors are keeping a close eye on these levels as Ethereum tries to regain momentum amid broader market uncertainty. The next few days will be crucial in determining whether ETH will continue its upward trend or face further downward pressure.

Featured image from Dall-E, chart from TradingView