Has Ethereum Opened the Door to $3K After the Latest Breakout?
ETH's recent surge could mark the beginning of a new upward trend.
1Ethereum's Recent Surge
Ethereum has staged a sharp breakout from its multi-week consolidation and is currently trading around $2,400. This move is supported by strong momentum acceleration and a noticeable rise in short liquidations. However, the sharp increase in RSI readings suggests the rally could be vulnerable to a near-term pullback. ETH managed to break above the descending trendline that had been in place for months.
2Breakout on the Daily Chart
On the daily chart, ETH decisively broke above the descending trendline that had been in place for months. This breakout is particularly significant because the price had been consolidating below this resistance for several months while forming higher lows from the June bottom near $1,500. The latest surge has carried ETH directly to the $2,100 resistance level, and it is now testing the $2,400 supply zone.
3The Immediate Test for the Rally
The $2,400 zone represents the immediate test for the breakout. A sustained daily close above this level could strengthen the bullish structure and open the way toward $3,000. On the downside, the former breakout area around $2,100 is now the first major support zone. Holding above this level would keep the recent breakout structure intact.
4Shift in Momentum
Momentum has shifted sharply in favor of the buyers. The daily RSI has jumped above 75, entering overbought territory. This does not invalidate the breakout, especially during a strong expansion move, but it does increase the likelihood of consolidation or a retest before another sustained leg higher. On the 4-hour chart, the RSI has surged far above 80 and is moving sideways in this region.
5Clear Picture on the 4-Hour Chart
The 4-hour chart provides an even clearer picture of the breakout. ETH spent much of the last few months moving sideways before suddenly breaking above the short-term mildly ascending channel and the $2,100 resistance zone. The breakout was followed by an almost vertical advance toward $2,400, indicating strong short-term momentum. If the rally starts to retrace, the $2,100 zone will be the key area to watch.
6Liquidation Analysis
The liquidation chart shows a clear increase in Ethereum short liquidations alongside the latest price surge. Short liquidations have risen sharply to around 28,000 during the latest spike. This suggests that the move above $2,000 has forced a growing number of bearish positions to close, adding forced buying pressure to the rally. In other words, the breakout appears to have developed a short-squeeze component.
7Historical Liquidation Comparison
However, the latest liquidation spike is still below several much larger liquidation events visible earlier in the chart, including episodes above 40,000 and 50,000. This indicates that the current squeeze has been significant but has not yet reached the most extreme levels seen during previous Ethereum rallies. As long as ETH holds the newly reclaimed $2,000-$2,100 area, the charts favor a bullish interpretation.
8Conclusion and Outlook
Whether buyers can sustain momentum above the $2,400 resistance zone will be the key question in the coming days. Given that both the daily and 4-hour RSI are deeply overbought and short liquidations are accelerating, a temporary cooldown would not be surprising. However, unless ETH loses its key support zones, the breakout structure remains constructive. This move could open the door for Ethereum to advance toward the $3,000 target.
Original article: CryptoPotato — Ethereum 3 Bin Doların Kapısını Araladı mı?