Technical Analysis of $ETH Price: Extraordinary Recovery... But Has the Rise Ended?

In the past week, Ethereum has begun to show clear signs of recovery after a fall of 66% in six months. The successful launch of "Pectra", the most significant upgrade since "The Merge", has further strengthened the narrative of the project's continuous development. This technical improvement aims to reduce transaction costs, optimize staking, and enhance user experience, all of which could lead to wider network adoption in the coming quarters. At the same time, the temporary trade agreement between the United States and China has had a positive impact on the market. The mutual reduction of tariffs, along with the 90-day pause in escalating protectionism, has rekindled investors' appetite for risky assets. This more favorable environment has also reached the cryptocurrency market, particularly benefiting Ethereum as a pillar of decentralized finance and smart contracts. Technical Analysis of ETH On the daily timeframe chart, Ethereum shows mixed signals but is trending towards the end of the bullish phase. After a vertical increase of more than 40% from May 8 to $2,624, the price has begun to show signs of weakening. Currently, the price is trading at $2,481.69, down 0.57% on the day, right in the middle of the channel defined by support at $2,141 and resistance at $2,735, indicating the possibility of consolidation or reversal. The trading volume has slightly decreased in recent sessions, indicating a fall in demand following the initial breakout of the EWO (Elliott Wave Oscillator). Although it remains in the positive zone, it shows a clear bearish divergence.

RSI (Relative Strength Index) is at 77, indicating a clear overbought condition on the daily timeframe. This reading often precedes trend pauses or technical pullbacks, as seen before the March 2024 correction. Additionally, a bearish divergence is beginning to form: while prices continue to reach higher levels, the RSI is flattening out and starting to turn down. The MACD is still in the positive zone, with a large gap between the fast and slow lines, reflecting strong recent momentum. However, the histogram chart has begun to contract, indicating that the bullish momentum is weakening. This signal becomes more significant when considering that the MACD is approaching the levels of ( around the 200) mark, which has previously experienced significant corrections.

Conclusion and Scenarios Ethereum may be entering a consolidation or technical pullback phase, with the range of $2,141 – $2,735 serving as a key reference. A fall below the support level could open the door for a move towards $2,000, while a breakthrough above the resistance level could push the price up to $3,000. However, current indicators suggest that the end of short-term bullish momentum may be imminent.