Ethereum has extended its recovery from the September lows and is now trading around $2.73K after slightly breaking above the $2.7K resistance area. The latest move has strengthened the short-term structure, although ETH is approaching another major resistance zone and momentum might be beginning to cool from its recent highs.

Ethereum Price Analysis: The Daily Chart

The daily chart shows a clear structural improvement following the sharp recovery from the $1.5K area. ETH subsequently reclaimed the $1.9K region and then broke above the $2.1K resistance zone with substantial force.

The breakout accelerated in August, pushing ETH above both the 100-day and 200-day moving averages. These key moving averages are now converging rapidly, which could lead to a potential bullish crossover around $2K. All of these signs point to the fact that the broader bearish structure has weakened considerably. Still, a complete long-term trend reversal would require ETH to trade above the higher resistance levels.

The market is currently trading around $2.73K, just above the marked $2.7K resistance zone. Holding above this area could open the way toward the next major resistance around $3.0K. That region is particularly important because it is also an important psychological level that the market would need to overcome.

On the downside, the former $2.7K resistance area could now act as initial support if the breakout holds. Below it, the $2.5K consolidation region is the next notable zone, followed by the key $2.1K support area, which also coincides with the key moving averages.

ETH/USDT 4-Hour Chart

The 4-hour chart provides a clearer view of the latest breakout. ETH spent much of September consolidating between roughly $2.4K and $2.7K before breaking higher over the recent sessions. The move finally carried price through the $2.7K resistance area.

The latest candles show some hesitation after ETH briefly pushed toward $2.8K. This is consistent with profit-taking around a previously marked resistance area rather than an immediate structural reversal.

The key short-term level is now the same $2.7K zone. Holding above this area and completing a pullback would preserve the recent breakout structure and could allow an attempt toward the $3K region. Conversely, a sustained move back below the $2.7K area would weaken the breakout and increase the possibility of a deeper retracement toward the $2.45K bullish order block in the short-term.

The 4-hour RSI has risen into the upper portion of its range following the breakout but has already pulled back from an overbought state. This indicates that momentum remains constructive, while also showing that the market has become less stretched after the initial surge, which is a positive sign showing momentum cooling off before another rally materializes.

Sentiment Analysis

The Ethereum Taker Buy Sell Ratio chart shows the metric’s 30-day average currently around 0.99. A reading below 1 indicates that aggressive taker selling has exceeded aggressive taker buying over the measured period.

This is notable because ETH has continued to appreciate despite the ratio remaining below 1. The latest price rebound therefore has not been accompanied by a clear dominance of aggressive market buying on this metric.

The chart also shows that the 30-day average has been declining from significantly higher levels seen around April and July. At the same time, ETH has recently moved sharply higher from the $1.8K area toward $2.7K. This divergence suggests that the rally has not yet been confirmed by a sustained improvement in taker-buying dominance.

A move in the ratio back above 1, particularly if sustained, would provide stronger confirmation that aggressive futures buyers are gaining control. Conversely, continued readings below 1 while ETH trades near resistance could leave the latest breakout vulnerable to a period of consolidation or correction, especially if spot demand fails to keep up with the selling pressure coming from the futures market.

Source: CryptoPotato