The cryptocurrency market is showing initial signs of recovery, with leading assets such as Ethereum (ETH) posting modest gains over the past 24 hours. After a edged decline that saw ETH fall to $2,154 last Friday, the digital asset is now approaching the $2,400 level, sparking optimism among investors.

Are there any signs of an imminent breakthrough?

In the recent social media post on X (formerly Twitter), market expert Jesse Olson highlighted several bullish indicators on the Ethereum 8-hour chart, suggesting a potential continuation of this rally. One of the key signals is a pending buy indication, which could facilitate a rebound to previously lost levels if macroeconomic conditions are favorable.

Olson also points out bullish divergence on the 8-hour chart, which typically signals a change in momentum to the upside. Additionally, a potential reversal candle has emerged, indicating that if the current momentum continues, it could bode well for bullish traders looking to capitalize on this rebound.

In addition, the expert emphasizes that the price of Ethereum is currently recovering 200 Week Moving Average (MA), along with recent trends in market indicators. The price also broke above a falling trendline that had been in place since tardy August.

However, maintaining this rally will be key to confirming these bullish signals. If Ethereum fails to maintain its upward trajectory, it could lead to a retest of lower support levels or result in price consolidation between $2,100 and $2,300.

Ethereum price is approaching key resistance

Crypto analyst Daan Crypto Trades shares this view, noting that Ethereum has rebounded solidly from support levels. However, he warns that trading in the $2,100 to $2,850 range could remain volatile.

Daan says in social media postthat consolidation above $2,850 would signal a significant bullish development for Ethereum, confirming a breakout from the current downtrend and setting eyes on the key $3,000 level that has not been reached since early August.

According to CoinGecko, ETH is currently trading on the upper side of a descending channel at $2,383, up almost 2% in 24 hours. data.

However, this boost is offset by a decline in trading volume for the second-largest cryptocurrency on the market, which amounted to $12 billion in the last 48 hours, down 15% compared to Monday’s trading session.

Moreover, over longer periods of time ETH Price continues to feel the effects of the edged declines seen over the past month, posting losses of 2.6% and almost 7% in the 14-day and 30-day time frames respectively.

Featured image from DALL-E, chart from TradingView.com