Ethereum Explodes 24% After Key Breakout: Rally To $4,956 In Play?

Ethereum has surged 24% in just over a week, breaking above a key resistance with strong volume and signaling renewed bullish momentum. With a bullish structure still intact, attention now shifts to whether ETH can sustain the move toward the $4,956 target or pause for a brief pullback first.

Following a swift 24% rally over the past 8 days, ETH has hit a major resistance level and is showing signs of rejection. According to Max Trades, this vertical move has occurred without any meaningful retracements, making a cooling-off period highly likely. A pullback at this stage is considered a healthy part of the market cycle to reset momentum.

A primary target for a potential long entry is the $2,150 level, which previously acted as range-high resistance. The setup is further bolstered by technical confluence, as this price point aligns closely with a key Fibonacci retracement level and sits above the weekly open.

Currently, Exponential Moving Averages (EMAs) are positioned below the spot price, providing a dynamic cushion. This suggests that the broader trend is still intact despite the immediate need for a price correction. Risk management is defined by a clear invalidation point below the $2,080 support level, which coincides with the Fibonacci Golden Pocket, a critical area for buyers to defend. 

In an update, Kamile Uray noted that Ethereum has broken above the pink resistance level on the chart with strong volume; a move that stands out compared to Bitcoin, which has yet to deliver a similar high-conviction breakout. The surge in volume adds credibility to the move, suggesting that bullish momentum is gaining traction.

From a lower timeframe perspective, a sustained 4-hour close above the $2,475 level would serve as the first confirmation that the upward trend has room to continue. Holding above this zone could reinforce the breakout structure and signal that buyers remain in control in the short term.

The broader outlook remains bullish as long as Ethereum continues to defend the $1,916 bottom on the 4-hour timeframe. Maintaining this level keeps the market structure supportive of further upside within the current trend.

Uray also highlighted that the Libra formation is still in play, with an upside target near $4,956. However, the $3,445 level stands out as a key resistance on the way up, where a rejection could trigger a temporary pullback before continuation. On the downside, the formation would be invalidated if price drops below the $1,388 level, marking it as the critical stop point for the bullish scenario.