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Ethereum is demonstrating renewed strength as it recovers from a critical retest near $1,550, signaling potential momentum toward $2,700 and beyond.
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The weekly MACD indicator reveals a bullish crossover, suggesting a shift in market sentiment after a period of significant volatility.
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According to COINOTAG, Ethereum’s price action mirrors historical cycle resets, reinforcing the likelihood of a sustained upward trend.
Ethereum rebounds from key support near $1,550, with bullish MACD signals and strong trendline support pointing to a possible breakout above $2,700.
Ethereum’s Technical Rebound Highlights Key Trend Support and Momentum
Ethereum’s price action is reaffirming its position along the decade-long logarithmic regression curve, a critical structural indicator in crypto markets. After retesting the lower support band near $1,550 earlier this year, ETH has staged a robust recovery, currently trading close to $2,488. This movement aligns with historical patterns where similar retests have preceded significant bullish cycles.
Examining Ethereum’s multi-year trend, the green support zone between $850 and $2,750 has consistently acted as a foundation for major market lows, observed in late 2018, mid-2022, and early 2025. Each instance marked the end of prolonged downtrends and the beginning of strong upward momentum. The recent weekly gain of 11.73% further underscores the presence of sustained accumulation and long-term investor confidence within this range.
Ethereum’s previous breakouts from this curve in 2020 and defense in 2022 set important precedents. The current recovery above $2,400 suggests a similar trajectory, with the green curve serving as a vital base and the red upper band near $3,500 to $4,800 acting as resistance. Price consolidation just above the midpoint of this curve reflects a mid-cycle phase often preceding accelerated price appreciation.
Short-Term Indicators Signal Momentum Shift Amid Volatility
Following a wedge breakdown, Ethereum experienced a swift rebound from oversold conditions, rejecting resistance near $2,870 and stabilizing above $2,460. This price action coincides with early bullish signals emerging from technical indicators.
The weekly MACD is displaying a bullish crossover pattern, with the MACD line ascending toward the signal line and histogram bars leveling off after a bearish trend. This momentum shift is occurring as Ethereum attempts to reclaim the psychologically significant $2,500 level. Market sentiment, as reflected in cycle charts, places ETH near a ‘bull trap’ zone, historically a point of temporary rejection before further consolidation.
Ethereum’s recent price behavior, including a flush near $2,260 to eliminate weak hands, aligns with established emotional market cycles. The critical question remains whether ETH can surpass $2,700 to confirm a continuation of the upward trend. A decisive break above $2,500 would reinforce bullish control, although resistance levels remain challenging.
The current compression and potential release pattern is characteristic of setups that have historically led to strong directional moves. While risks persist, Ethereum’s improving momentum and structural alignment with its long-term trend suggest a renewed phase of strength.
Conclusion
Ethereum’s recovery from a significant retest near $1,550, combined with bullish MACD signals and strong trendline support, indicates a promising outlook. The price action reflects historical cycle behavior, positioning ETH for a potential breakout above $2,700. Investors should monitor key resistance levels closely, as a confirmed move past $2,500 could signal sustained momentum. Overall, Ethereum appears poised to resume its long-term upward trajectory, supported by robust technical foundations and market dynamics.
