- Ethereum breaks above a long-standing downtrend, with bulls gaining control after a decisive move above the $1,630 resistance level.
- Technical indicators confirm the shift, with moving averages crossing bullishly and the DMI signaling growing trend strength in Ethereum’s price action.
- Market momentum is building, and if Ethereum maintains current support, the next major price target stands near the $1,936 resistance zone.
Ethereum has broken its two-month-long downtrend, marking a technical shift that could position the asset for a rally toward $2,000. The move follows a strong daily candle that has taken ETH above a key resistance zone.
ETH Exits Descending Channel
Crypto trader TedPillows tweeted that this is Ethereum’s first breakout from its downtrend since February 2025. He added that if ETH can hold the $1,600 level, it could rally toward $2,000 within April. The chart now shows the invalidation of the prior pattern of lower highs and lower lows, shifting sentiment toward a bullish outlook.
Ethereum (ETH) has officially exited the descending channel that had capped its price since early March. The breakout was confirmed as ETH surged past the channel’s upper boundary, closing above $1,700 with a 7.91% daily gain.
The breakout area near $1,630 has now turned into a key support zone. Traders are watching for sustained momentum as ETH approaches the next resistance between $1,725 and $1,880.
Technical Signals Support Bullish Move
The 9-day moving average has now crossed above the 21-day moving average, reinforcing the upside momentum. This crossover has been interpreted as a sign that buyers are gaining control after a prolonged sell-off.
Additional confirmation comes from the Directional Movement Index (DMI). The +DI has crossed above the -DI, while the ADX is rising, now near 17.33. This suggests an emerging trend with growing strength behind the recent move.
Volume and volatility have also picked up, signaling strong participation in this breakout. Traders will monitor whether these indicators remain aligned in favor of buyers in the coming sessions.
Ethereum Eyes Key Resistance Ahead
If bullish momentum holds, ETH may challenge the $2000 level. However, any drop below $1,630 could put the breakout at risk and invite renewed selling.
Ethereum traded at $1,701.46, with 24-hour volume at $20.69 billion at the moment of writing this article. In the last seven days, the cryptocurrency gained 5.64%.
