Ethereum is at a critical point, testing the resistance in the $2.6K-$2.7K zone. A breakout may signal a mid-term upward trend.

Current Market Situation

Ethereum has experienced a significant surge in price, driven by active buying around the $2.3K support level. These changes have enabled the cryptocurrency to break above the descending channel’s middle trendline, indicating a potential shift towards a bullish trend. However, Ethereum has encountered a significant resistance zone, including the Head and Shoulders (H&S) neckline and the 100-day moving average at $2.6K.

Daily Chart Analysis

If Ethereum can breach this key resistance, it would confirm the completion of the H&S pattern, a bullish reversal signal. This could lead to a mid-term uptrend, potentially reaching the $2.8K mark. A breakout above the 100-day moving average would highlight buyers' dominance. However, this resistance area may also trigger a pullback, causing prices to consolidate.

4-Hour Chart Analysis

On the 4-hour chart, Ethereum received strong support at $2.3K, forming a double-bottom pattern, a bullish reversal indicator. This pattern fueled a sharp price increase, pushing ETH to the resistance zone between the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci retracement levels. This resistance region has proven difficult to break, and further price action will determine Ethereum’s next direction.

Analysis of technical and market data suggests that Ethereum is on the brink of new opportunities. Current resistance levels will determine its further movement.