Ethereum has staged a sharp breakout from its multi-week consolidation, trading around $2.4K after reclaiming a key descending trendline. The move is supported by strong momentum and a rise in short liquidations. However, the Relative Strength Index (RSI) has surged into overbought territory on both the daily and 4-hour charts, suggesting the rally could face a near-term pullback. Key support levels to watch are $2.1K and $1.8K, while a sustained close above $2.4K could open the path toward $3K.
Ethereum has staged a sharp breakout from its multi-week consolidation, with ETH now trading around $2.4K after reclaiming the descending trendline that had capped the broader recovery. The move is supported by a strong acceleration in momentum and a noticeable rise in short liquidations.
On the daily chart, ETH has decisively broken above the descending trendline that had been in place for months. The breakout is significant because the price had spent several months consolidating below that resistance while forming higher lows from the June bottom near $1.5K.
The latest surge has carried ETH directly into the $2.1k resistance level, with the price currently testing the $2.4K supply zone. A sustained daily close above the zone would strengthen the bullish structure and could open the way toward $3K and potentially higher. On the downside, the former breakout area around $2.1K is now the first major support zone.
Momentum has shifted sharply in favor of buyers. The daily RSI has jumped above 75, running deep into the overbought area. This does not invalidate the breakout but does increase the probability of consolidation or a retest before another sustained leg higher.
The 4-hour chart provides an even clearer picture of the breakout. ETH spent much of the last few months moving sideways before breaking above the short-term channel and the $2.1K resistance zone. The breakout was followed by an almost vertical advance toward $2.4K.
Data shows a clear increase in Ethereum short liquidations alongside the latest price surge. This suggests the move above $2K has forced bearish positions to close, adding forced buying pressure. The charts favor a bullish interpretation as long as ETH holds the newly reclaimed $2K-$2.1K area.
