Ethereum Bulls Hold the Line as MACD Momentum Slows
Ethereum (ETH) continues to ride a wave of bullish momentum on the daily chart, with price action pressing up against critical resistance zones.
The current trend reflects a sustained upward trajectory supported by strong buying interest, though momentum indicators suggest a potential cooling-off period may be ahead.
Bullish Structure Holds Above Support
Ethereum’s recent price behavior has shown resilience, with successive closes recovering from brief dips. The consolidation above $2,600 suggests that short-term support around $2,602 and $2,457 remains intact. These zones are pivotal, acting as springboards for recent bounces and providing clear invalidation levels for bullish setups.
Daily chart for WETH/USD (Source: GeckoTerminal)
On the flip side, resistance near $2,618 is being repeatedly tested, and the region between $2,659 and $2,694 has emerged as a supply zone that could cap near-term rallies unless buying volume intensifies. A decisive break above this range may trigger a momentum-based breakout, potentially opening the door toward $2,800 and beyond.
Ethereum Momentum Indicators Signal Caution
The MACD continues to print a widening gap between its main line and signal line, a classic sign of bullish continuation. However, the histogram’s gradual flattening suggests that the momentum may be reaching a peak. This is further reinforced by the RSI, which remains firmly in overbought territory—hovering in the low to mid-70s. While this does not guarantee an immediate reversal, it often precedes a short-term correction or sideways chop.
Traders should monitor these indicators closely. Sustained overbought conditions paired with resistance rejection could invite profit-taking, particularly from short-term holders.
Ethereum’s position above both the 9-day and 20-day EMAs reinforces the bullish structure. These moving averages have acted as dynamic support during retracements, and their upward slope signals strong trend health. The 9 EMA in particular has kept close to price action, suggesting that any dip toward the $2,450–$2,500 region could be a buying opportunity—provided no breakdown follows.
Trading Strategy Outlook
For long trades, a breakout above $2,694 with strong volume could offer an entry, targeting the psychological level at $2,800 and placing a stop-loss just below $2,602. Alternatively, a bounce off the $2,457–$2,440 support band may provide a lower-risk entry on pullbacks.
For short setups, bearish Ethereum traders might look to fade a weak rejection from the $2,659–$2,694 resistance zone, especially if RSI and MACD momentum weaken further. Targets could be set around the $2,457 and $2,440 support levels, with stops placed just above recent highs to minimize risk.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
