Ethereum Reestablishes Its Strength, But Bulls Have More Work Ahead

Ethereum is beginning to show signs of renewed strength as it stabilizes after several months of turbulent price movements. Although recent technical advancements indicate a shift in momentum favoring the bulls, there remain significant resistance levels that need to be considered. Therefore, while the recovery appears promising, it is not yet fully confirmed.

Key Takeaways

Ethereum shows signs of recovery but faces significant overhead resistance.
Analyst Luca warns of risks associated with a potential false breakout.
The focus is on the crucial Fibonacci resistance at $3,120 for confirming bullish trends.
StockTrader_max notes a bullish shift with Ethereum closing above the 50-day moving average.
The next objective for growth is the 200-day moving average around $3,550.

Ethereum

Current Market Structure: Pessimism Despite Recent Gains

In a fresh market analysis, crypto analyst Luca shared a cautious perspective on the existing market structure of Ethereum. While the price has achieved a significant technical milestone by breaking above the 1D Bull Market Support Band—a zone known for its consistent function as a reversal point over the months—Luca is not fully convinced that a broader trend change is underway.

The main challenge for a clear bullish reversal lies at the 0.618 Fibonacci level, currently at $3,120. According to Luca, Ethereum needs to firmly reclaim this point to shift sentiments in lower timeframes. Until this price target is secured as a support level, the risk of the current movement being a temporary spike remains elevated.

Ethereum

ETH Bulls pushing for an upward move | Source: Chart from Luca on X

In relation to Bitcoin’s current situation, Luca advises investors to adopt a defensive strategy, noting that the market has yet to establish a confirmed breakout above the Fibonacci resistance. This cautious approach aims to prevent emotional trading amid a high level of uncertainty and potential market volatility.

To mitigate risks, Luca suggests keeping cash reserves to hedge against spot holdings in the event of a rejection. Should Ethereum fail to maintain its current levels, a deeper pullback towards previous high-timeframe resistance at around $2,700 could occur before a more stable upward trend is achieved.

A Positive Trend for Ethereum as 2026 Begins

According to analyst StockTrader_max, Ethereum has kicked off 2026 on a promising technical note. For the first time since October 9, ETH has closed above the 50-day moving average, marking a significant shift after a series of liquidation events that impacted the broader crypto market. This close indicates a critical change in trend dynamics after extended periods of trading below key short-term averages.

From a bullish viewpoint, reclaiming the 50-day MA serves as an essential confirmation following a lengthy corrective phase. This signals improving momentum and suggests that buyers are starting to regain control, potentially paving the way for a sustained recovery rather than just a fleeting rebound.

Looking forward, StockTrader_max identified the 200-day moving average at approximately $3,550 as the next major target. As capital flows back into Ethereum and market risk appetite improves, the analyst anticipates that price action will trend toward this level in the near future.

Ethereum

ETH trading at $3,101 on the 1D chart | Source: ETHUSDT on Tradingview.com