Ethereum (ETH) price is showing early signs of recovery, with key technical indicators turning favorable across short, mid, and long-term charts. Analysts are observing moving average recaptures, compressed price movements, and solid weekly support, suggesting that ETH may be gearing up for a significant rally back toward the $4,000 mark this year.
ETH Reclaims 50-Day Moving Average
In an insightful analysis, a prominent trader noted a critical technical change as Ethereum recently reclaimed its 50-day moving average near the $3,000 level for the first time since October 2025. This movement followed a bounce from December lows of around $2,800, bolstered by rising green candles and increasing trading volume.
This kind of price recovery is typically seen as a transition from a corrective phase to a continuation of the existing trend. Currently, ETH is consolidating just above this moving average, indicating that buyers are defending this level. If ETH can maintain its position here, it strengthens the likelihood of a rally toward the next resistance level around $3,200.
Short-Term Chart Indicates Potential Breakout
Meanwhile, another analyst has spotlighted the one-hour ETH price chart, which showcases a phase of price compression. The price has been trading below a descending trendline since reaching a peak near $3,200 in December. However, recent trading indicates a bounce from the $2,900 zone, with ETH now challenging that trendline.
This setup hints at a market poised for direction, especially during periods of low trading volume. A decisive break above the trendline could propel prices towards $3,100 soon. Historically, such movements correlate with thin liquidity scenarios.
Strong Weekly Support Keeps Bullish Sentiment Alive
Moreover, analysis of Ethereum’s weekly chart underscores the significance of its structure. Since November 2025, ETH has consistently held a defined buy order block between $2,500 and $2,800, a zone that has acted as a solid accumulation area for weeks.
The sustained defense of this area indicates that sellers may have depleted their momentum. Price stability above $3,000 suggests a growing confidence among long-term market participants. This behavior usually precedes potential moves to higher resistance levels, pointing to an optimistic outlook.
Looking forward, the next significant resistance level appears at around $4,100, identified as a sell order block. A move toward this price range would exemplify the continuation of a broader uptrend initiated since 2024. However, a weekly breakdown beyond $2,500 would reverse this positive sentiment. Current market conditions, surprisingly, still promote gradual upward movement toward higher price levels.
In the evolving landscape of the cryptocurrency market, Ethereum’s aligning technical signals and robust support levels are laying the groundwork for potential ascension toward the $4,000 zone. Traders and investors alike are eagerly anticipating potential confirmation of this bullish trend as momentum builds in the weeks ahead.
