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Ethereum has broken a significant year-long RSI downtrend and reclaimed the crucial $2,500 support level, signaling renewed bullish momentum in the crypto market.
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The cryptocurrency also closed above the 21-week simple smoothed moving average (SSMA) for the first time since November 2024, turning a former resistance into dynamic support.
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According to COINOTAG sources, this technical shift positions Ethereum to potentially rally toward the $4,000 mark if momentum sustains.
Ethereum breaks RSI downtrend, reclaims $2,500 support, and closes above 21 SSMA, setting sights on $4,000 in a renewed bullish trend.
Ethereum’s RSI Breakout Marks a Pivotal Momentum Shift
Ethereum’s Relative Strength Index (RSI) has decisively broken out of a downtrend that persisted since March 2024, marking a pivotal shift in market momentum. The RSI crossing above the 50 threshold for the first time in over a year reflects a resurgence of buying pressure and renewed investor confidence. This breakout is a key technical indicator, often signaling the transition from bearish to bullish market conditions.
Market analysts highlight that this momentum shift aligns with Ethereum’s price recovery from its April 2025 lows near $1,500. The RSI breakout suggests that buyers are regaining control after an extended period of subdued momentum, potentially setting the stage for sustained upward price action.
Consolidation Above $2,500 and 21 SSMA Validates Support
Following its initial rally, Ethereum encountered resistance at the 21-week simple smoothed moving average (SSMA), hovering around $2,532. The subsequent consolidation phase above the $2,500 support level has been critical in establishing a stable base for further gains. Closing above the 21 SSMA for the first time since late 2024 is a significant technical development, as this moving average has historically acted as a strong resistance barrier.
Technical experts note that this breakout and consolidation reinforce the bullish narrative, with the 21 SSMA now potentially serving as a dynamic support level. This shift enhances Ethereum’s technical setup, indicating a higher probability of trend continuation and increased investor confidence in the near term.
Approaching Key Trendline: Potential Rally Toward $4,000
Ethereum is currently testing a long-term ascending trendline, which represents a critical juncture for the asset’s price trajectory. A weekly close above this trendline would confirm a full recovery of the bullish structure, opening the door for a potential rally toward the $4,000 resistance level. This target aligns with previous zones where sellers had capped upward momentum, making it a significant hurdle to overcome.
Market participants are closely monitoring Ethereum’s interaction with this trendline, as it will provide valuable insights into the strength and sustainability of the current bullish move. A successful breakout could attract additional buying interest, propelling ETH into a new phase of upward momentum.
Conclusion
Ethereum’s recent technical developments—including the RSI breakout, reclaiming of the $2,500 support level, and closing above the 21 SSMA—signal a meaningful shift toward bullish market conditions. The approaching long-term trendline represents a decisive test that could confirm further upside potential, with $4,000 emerging as a key target. Investors and traders should watch these technical levels closely as Ethereum navigates this critical phase, potentially setting the stage for sustained growth in the coming weeks.
