Analysis of Ethereum Price Rebound and Potential for New ATH

The cryptocurrency markets experienced a significant decline and entered a consolidation phase resembling a pennant, a pattern similar to the Ethereum price movement. Following the approval of the spot Ethereum ETF, the price of ETH surged by more than 20% in a single day. This surge instilled hope among market participants, leading them to adopt a positive outlook towards the token. However, despite this catalyst, ETH failed to break the $4000 barrier, resulting in an 11% decline in its price.

Ethereum, the second-largest cryptocurrency, found itself within a descending wedge pattern that was breached upon the approval of the spot ETF. Despite the prevailing bearish sentiment, recent price movements indicate a strong effort by bulls to push the price above a crucial range. Nevertheless, the confirmation of a bullish breakout hinges on ETH attaining specific levels. Upon reaching these levels, the token could initiate a fresh uptrend and potentially establish a new all-time high.

The daily chart of Ethereum signals the potential for a robust and sustained price rebound, with minimal chances of a bull trap. Key resistance levels, such as the 50-day EMA at $3,499, have been surpassed, coinciding with vital support at $3,480, thereby sustaining the bullish momentum. For a definitive validation of a bullish scenario, the price must ascend and hold within the critical resistance zone ranging from $3670 to $3718, ultimately overcoming the prevailing bearish pressure.

In essence, Ethereum's price trajectory necessitates a breakthrough above $3700 post the successful breach of the 50-day EMA. This advancement is anticipated to reignite a potent bullish trend, propelling the price beyond the yearly highs just above $4000. Continual sustainability above these levels, coupled with limited selling pressure, could pave the way for a new all-time high close to $5000.