- Ethereum is holding above the $2,680 support level but still faces resistance near $3,000.
- A strong weekly close above $2,680 could signal a potential breakout toward higher prices.
- Traders must monitor Ethereum’s ability to sustain its position above this critical support zone.
Ethereum (ETH) has barely managed to close the weekly candle just above the crucial support trendline, with the price hovering around $2,680. This key level is essential in determining the direction of ETH in the coming weeks.
According to analyst Anup Dhungana, the closure above this support trendline signals an attempt by Ethereum to hold above the major support, but more strong weekly closes above this level are needed to confirm bullish momentum. The current market action highlights a critical juncture for ETH, with the price struggling to stay above its recent support zone after a period of consolidation.
Ethereum’s Struggle and Support Line Confirmation
Ethereum’s price action over the past few months has been contained within a broad ascending triangle pattern, indicated by the green and blue bands on the chart. These bands mark key support and resistance zones, with Ethereum repeatedly testing these levels. The price is currently positioned above the support line, which has been holding since mid-2022, signaling that bulls are still trying to control the market. The support level in the range of $2,680 has proven to be strong in the past, with Ethereum bouncing off this level multiple times, indicating its importance.
However, as the chart shows, Ethereum is not completely out of the woods yet. The $3,000 resistance zone has proven to be challenging for ETH to break through. The red arrows on the chart highlight the repeated failures of Ethereum to maintain upward momentum beyond this price point. Until Ethereum can close several weekly candles above $3,000, the market remains at risk of being stuck within this range-bound environment.
Impact of Weekly Closures and Price Action
The weekly closure above $2,680 is crucial for maintaining the bullish outlook for Ethereum. If ETH can manage to close another strong weekly candle above this level, it would solidify the idea that Ethereum is on a path to retest the $3,000 resistance zone.
The price movement within the ascending triangle pattern further emphasizes this point, with Ethereum potentially moving towards the upper boundary of the pattern. The key issue now lies in the continuation of bullish momentum, which requires sustained buying pressure.
Ethereum’s recent price movement shows potential for a breakout if it can continue to hold above this support zone. As Anup Dhungana suggests, the coming weeks will be essential in determining whether ETH can maintain this level and start challenging its resistance.
