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Ethereum is showing renewed signs of strength after a period of heavy market pressure. The cryptocurrency has held the $2,990 support level, opening the possibility for a push toward the $3,400 target in the near term. Analysts note that while the broader trend remains mixed, lower-timeframe charts are beginning to show improved structure, hinting at growing demand in key zones.
Market expert Scient explained that Ethereum’s gradual upward movements often trigger sharp pullbacks, but the current short-term setup remains positive. “ETH has broken out of its local one-hour range, flipped that area into support, and is now forming a bullish C-fork pattern,” he said. “As long as it stays above $2,990, the market has room to reach $3,400 before facing any significant correction.”
At present, Ethereum is trading around $3,020–$3,030, marking a weekly rebound of nearly 7.8 percent. This follows a strong decline that had pushed prices below the 20-week EMA. The latest weekly candle features a long lower wick, confirming buyer intervention near the $2,760–$2,800 range. This area aligns with the 0.618 Fibonacci retracement and mid-range Auto Fib support, making it one of the strongest demand zones in recent months.
Weekly Indicators Show Stabilization, Mixed Momentum
Ethereum’s moving averages present a nuanced picture. While the asset trades above both the 100-week and 200-week EMAs—which are trending upward—it remains below the 20-week and 50-week EMAs. Breaking above $3,300 would allow Ethereum to surpass these shorter-term averages and attract fresh buying momentum.
Bollinger Bands suggest that Ethereum has rebounded from the lower band and is moving toward the mid-band, signaling the start of a potential mean reversion. Historical resistance levels are still significant, with notable highs likely to emerge around the $3,600 mark.
Technical indicators offer additional insights. The Relative Strength Index (RSI) currently sits at 42.9, a neutral-to-bearish zone, though it is recovering from previous lows near 40. Meanwhile, the MACD remains in negative territory, but the shrinking histogram indicates weakening bearish momentum. These signals suggest that Ethereum is attempting to stabilize and lay the groundwork for further gains.
Short-Term Breakout Critical for Higher Targets
Despite recent improvements, experts stress that Ethereum needs to break above the $3,300–$3,350 range to initiate a significant rally. Doing so could pave the way for year-end levels between $3,600 and $3,800. Until then, traders should remain cautious, as the market remains susceptible to short-term corrections even amid bullish setups.
The overall sentiment is cautiously optimistic. While the cryptocurrency has shown resilience, decisive moves above key resistance levels will be necessary to sustain a strong upward trend.
Fusaka Upgrade Poised to Support Ethereum Fundamentals
On the fundamental side, Ethereum is preparing for the Fusaka upgrade, expected to be released this week. The update is gaining attention as a potential catalyst for market confidence. Industry expert Zun highlighted that a key component of the upgrade, PeerDAS (EIP-7594), aims to improve data availability across layer 2 networks.
To clarify, Ethereum uses “blobs,” which function like temporary storage lockers for transaction data from layer 2 networks. These blobs allow the data to be stored cost-effectively before being posted onto the Ethereum mainnet, helping reduce operational costs and improve efficiency. This improvement is seen as a long-term fundamental support for Ethereum, reinforcing confidence among investors and traders.
What Traders Should Watch Next
Traders are keeping a close eye on several key levels. Immediate support remains at $2,990, while resistance is noted at $3,300–$3,350. A successful breakout could validate the bullish scenario, targeting $3,400 and eventually $3,600. Conversely, failure to maintain support could open the door for a retest of the $2,760–$2,800 demand zone.
Market watchers also suggest monitoring the Fusaka upgrade closely. While technical analysis shows promising signs, fundamental developments often play a decisive role in Ethereum’s medium-term trajectory. A smooth upgrade rollout could reinforce bullish sentiment and encourage more buying activity.
Conclusion
Ethereum is demonstrating resilience after weeks of market pressure, supported by key demand levels and upcoming fundamental upgrades. While momentum remains mixed, a breakout above $3,300–$3,350 could set the stage for higher targets around $3,400 and beyond. Traders should monitor both technical signals and the Fusaka upgrade, which may provide a critical boost for the asset in the coming weeks.
As Ethereum navigates this pivotal zone, the coming days could determine whether the cryptocurrency maintains its recovery or faces renewed corrections.
