The crypto markets faced a severe crash and began to coil up within a pennant, much like the Ethereum price rally, which is stuck in a similar phase. After the spot Ethereum ETF approval, the ETH price soared by over 20% in a day. This raised the hopes of the market participants, who had turned optimistic about the token. However, the catalyst failed to lift the levels above $4000, which caused the ETH price to drain by over 11%.
The second largest crypto, Ethereum, was stuck within a falling wedge that was broken after the spot ETF approval. Regardless of the bearish influence, the latest price action suggests the bulls are trying hard to rise above the pivotal range. However, the bullish breakout may not be validated until the ETH price reaches certain levels. Once done, the token could trigger a fresh upswing and form a new ATH.
The daily chart of Ethereum suggests the price is preparing for a strong and sustained rebound with fewer possibilities of a bull trap. The levels have surpassed one of the important resistances at 50-D EMA at $3,499. However, this coincided with one of the pivotal supports at $3,480, which keeps the bullish momentum alive. However, the price is required to rise and sustain within the key resistance zone between $3670 and $3718, which may validate a rise above the bearish influence.
Collectively, the Ethereum price is required to rise above $3700 after successfully achieving the 50-day EMA. This move is expected to revive a strong bullish trend and raise levels beyond the yearly highs just above $4000. Once the Ethereum (ETH) price sustains above these levels without facing significant selling pressure, a new ATH close to $5000 could be imminent.
