- Ethereum holds firm above $3,700 after a 60% rally, with key support zones at $3,400–$3,600 supporting bullish market outlook.
- Breakout from a long term downtrend in April led to strong upside, with $4,000 now acting as psychological resistance.
- RSI near overbought and declining volume hint at short term weakness, but structural support keeps upward momentum intact.
Ethereum is holding firm above key levels even as traditional markets show weakness, with analysts forecasting further upside. On Monday, Ethereum traded at $3,782.12 after dropping 2.37%, but is significantly up from April lows.
The coin has rallied over 60% from around $2,400, following a major breakout past its long-term descending resistance. While macro markets had a red-to-mixed day, analysts now expect a rebound for crypto with a green “Turnaround Tuesday.”
One analyst highlighted that Ethereum is maintaining momentum and could push higher despite recent short-term consolidation.
Breakout Confirmed After Extended Downtrend
Ethereum’s recovery began after breaking out of a descending resistance line that spanned from late 2024 to April 2025. During this period, several buy signals appeared at $2,200–$2,600, aligning with key horizontal support zones.
The structure shifted in April, when price reclaimed $2,250 and climbed past $2,750. That former resistance now acts as support, reinforcing bullish confirmation. From there, Ethereum surged, reaching a high of $3,873 before seeing a minor dip.
The chart shows strong upward momentum with higher highs and solid support levels below current price. Price acceleration started after the breakout, but caution emerged around $3,850, where a 10% sell signal was noted. This suggests traders may begin taking partial profits as Ethereum approaches the psychological $4,000 resistance.
Analyst Points to Liquidity Zones Below
However, another analyst indicated that Ethereum could briefly drop before heading higher. Price has already taken liquidity near $2,800–$2,900 earlier in the rally. Currently, price appears to be tapping another zone around $3,950–$4,000.
This level may hold large buy orders, increasing volatility in the short term. The downside risk appears concentrated near $3,400, which may serve as a flush point for long positions. If a pullback occurs, further support zones are at $2,630 and $2,400.
These levels match previous consolidation areas where demand has returned strongly in past cycles. RSI is near the overbought region, and volume is decreasing, both of which suggest short-term weakness.
Momentum Holds as Key Levels Stay Intact
Despite the short term risks, Ethereum outlook is bullish as long as price stays above $3,400–$3,600. Maintaining support above $3,700 would reinforce upward strength, keeping the $4,000 target within reach. If price breaks above that level, the next key resistance stands at $4,800.
It remains whether Ethereum can hold momentum without deep correction. While volatility remains high, structural support zones have not failed. With previous resistance now turned support, bulls maintain control of Ethereum’s trend heading into the week.
