Ethereum is maintaining a bullish price structure as traders are confident in the upward direction of the price. Following a strong, impulsive upward move, the market has transitioned from expansion to controlled consolidation. This indicates that the price is showing signs of strength, not weakness.
This type of price behavior typically indicates growing confidence among short- and swing-term traders. Ethereum continues to trade above former resistance levels. Those areas have become new levels of support, and they continue to reinforce the bullish outlook.
Ethereum Trend Structure Still Bullish
According to Alpha Crypto analysis, Ethereum’s structure remains bullish on lower timeframes. As seen on the 4-hour chart, Ethereum continues to make higher lows following the breakout. When buyers absorb supply during pullbacks, this is a signal of buyers taking control.
On the 4-hour chart, Ethereum continues to respect the 9 EMA during minor pullbacks. The continued respect for the 9 EMA is a sign of short-term momentum despite the consolidation.
Additionally, this type of orderly consolidation versus an impulsive pullback down helps to show that the price is in a healthy bull phase. The 50 Simple Moving Average (SMA) is another structural support level.
On the 4-hour chart, Ethereum is trading above the rising 50 SMA. As long as the price holds above the 50 SMA, the broader trend will remain intact.
Source: X
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Ethereum Holding Above Trend Defining Levels
One of the other structural supports that reinforce the current setup is the 200 Exponential Moving Average (EMA). As seen on the 4-hour chart, Ethereum is positioned comfortably above the 200 EMA.
This position reinforces the bullish bias on the higher time frames. Historically, the 200 EMA has acted as a trend filter separating bullish trends from bearish trends.
As long as the price remains above the 200 EMA, any downward moves will be classified as corrective. This will add to the confidence that the current consolidation phase is a healthy bull phase.
200-EMA. Source: TradingView
Structural Bullish Bias Supported by Indicators
Momentum indicators are also supportive of the bullish structure. Despite some recent flatness, the MACD is still above the zero line. This is a sign that the momentum is reset, and not losing steam.
As confirmation, traders are watching for renewed histogram expansion. The relative strength index (RSI) provides additional context. The RSI is currently trading above the 50 neutral level, confirming that the bullish momentum is still intact.
During the consolidation period, the RSI has remained far enough away from extreme overbought conditions to reduce the chances of a steep correction. However, the RSI’s current position does provide a solid basis for the continuation bias.
MACD and RSI. Source: TradingView
$3,500 Zone Provides Focus for Upside Action
Currently, the $3,500 resistance point is the most important target for the bulls. Both psychologically and technically, the $3,500 level is acting as a barrier to upside movement. A successful breakout above this level would confirm the next leg higher.
However, a decisive breakdown through the support points mentioned earlier would challenge the bullish thesis. In such a case, the structural integrity of the trend would begin to weaken.
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