- Ethereum price rebounds from a two-month bullish megaphone base as staking entry queue hits a two-year-high.
- ETH’s immediate upside faces pressure from mixed momentum and a short-term descending resistance.
- Ethereum’s steady trade above key SMAs and within a three-week bullish channel strengthens its upside bias.
- Short-term ETH upside aligns with its broader bullish trend, boosting chances of a new all-time high.
Ethereum (ETH) price jumps over 1% intraday to reach $4,380 early Wednesday, building on the previous day’s strong rebound while taking a U-turn from the key technical support.
The ETH’s recent bounce from a two-month “Bullish Megaphone” pattern ties to the staking entry queue hitting a two-year high, signaling rising trader interest.
Ethereum’s validator queue data shows growing demand for staking, with the entry queue hitting its highest level since September—860,369 ETH on Tuesday, easing slightly to 817,213 by press time according to the official website of the ETH Validator Queue. This surge signals a strong market rush into ETH staking, boosting buyer interest and supporting the price alongside key technical patterns.
Meanwhile, the Directional Movement Index (DMI) and Moving Average Convergence Divergence (MACD) momentum indicators are downbeat and challenge the ETH’s latest rebound, especially amid a sluggish market capitalization and a softer trading volume.
According to Santiment, the ETH’s daily trading volume retreats from a week’s high, marked the previous day, to $37.3 billion, while the market cap drifts lower to $521.5 billion.
For more details, check out our Crypto Bytes.
Ethereum Price: Daily Chart Favors Gradual Recovery
A two-month-old “Rising Megaphone” trend-broadening chart pattern, sustained trading beyond the key Simple Moving Averages (SMAs), and the latest validator queue data underpin the ETH’s recovery.
However, a descending resistance line from August 22, close to $4,410 at the latest, guards the immediate upside of altcoin, especially amid the bearish MACD signals and sluggish DMI hints. The DMI’s Average Directional Index (ADX) hovers near the neutral 25 level, while both the Upmove (D+) and Downmove (D-) lines sit around a weak 20, indicating slow momentum in the ETH market.
Hence, the quote’s upside break above the $4,410 resistance may take time, but it won’t be ruled out unless ETH closes daily below the megaphone’s lower boundary near $4,330.
During the coin’s run-up beyond $4,410, the August 17 swing high of $4,577 and the early-month peak of $4,782, as well as the all-time high (ATH) of $4,954 and the $5,000 psychological magnet, will gain the market’s attention.
Notably, the quote’s sustained trading beyond the $4,954 will defy the bearish candlestick formation and allow buyers to aim for fresh record tops, highlighting the $5,000 round figure, as well as an ascending trend line forming part of a multi-month trend-broadening chart pattern, close to $5,400 at the latest.
On the contrary, a daily closing beneath the $4,330 will defy the bullish chart pattern and can drag the quote toward the 50-day SMA support of $4,076, as well as the $4,000 threshold.
Should Ethereum remains bearish past $4,000, a rising trend line from early April near $2,900 could lure the ETH sellers.
Above all, the 200-day SMA level of $2,704 appears to be the last line of defense for the ETH buyers.
Ethereum Price: Four-Hour Chart Appears More Promising
On the four-hour chart, a three-week bullish channel, a break above July’s resistance, and steady trading above the 200-bar SMA, along with a recent bullish MACD crossover, keep buyers optimistic.
Still, the DMI shows weak momentum as the Downmove (orange) stays above the ADX (red) and Upmove (blue), with all three below the neutral 25 level.
Hence, a clear upside break of the $4,410 hurdle becomes necessary to pique the ETH buyer’s attention.
In that case, the $4,700 and the bullish channel’s top surrounding the $4,870 may test the upside momentum before highlighting the daily chart levels.
On the contrary, the 200-bar SMA of $4,257 and the channel’s bottom of $4,225 precede the ascending trend line from July 21, the resistance-turned-support near $3,960, to restrict the ETH’s downside.
Below that, the deeper level discussed on the daily chart will gain the market’s attention and can challenge the broadly bullish bias about the ETH.
Conclusion
Ethereum is likely to carry its latest rebound, backed by strong fundamentals and sustained trading beyond the key SMAs. This can add strength to the broadly bullish outlook. However, the momentum indicators are weak and hence traders should remain cautious of both bullish breakouts and downside risks, even if it’s broad uptrend is likely to prevail.
