Ethereum breaks out above $2.300, but must hold the level

Ethereum is making a solid breakout above $2.300 and is trading around $2.500 at the time of writing. The price is thereby setting a higher high on the weekly chart, which is an improvement in the market structure. But according to analyst DaanCrypto, it is now crucial that Ethereum holds this level. A pullback below $2.300 would undo the positive signal.

Ethereum is available at OKX and Bybit.

In short:

• Ethereum breaks out above $2.300 and records a higher weekly high
• Analyst DaanCrypto sees improved market structure, but warns of a pullback
• The price is around $2.500, a slight decline of 0.4% in 24 hours

Higher weekly high improves market structure

The breakout of Ethereum above $2.300 can be seen on the weekly chart as a higher high, something that had been absent in recent months. That is a technically positive signal, as it indicates that buyers are willing to step in at higher levels.

On the daily chart, the 200-day EMA around $2.155 and the 200-day MA around $2.020 have both now moved below the price. This indicates that the recent rally was strong and that Ethereum has regained ground on multiple technical fronts.

$2.300 is now the key level for bulls

DaanCrypto states that the zone around and just below $2.300 is now the level that bulls must defend. The price has broken upward from that zone, and a fall back below it would mean the breakout has failed. That is a scenario you want to avoid as a bullishly positioned investor.

Ethereum is trading at $2.500 at the time of writing, a slight decline of 0.4% compared with a day earlier. The price peaked earlier today around $2.535. Whether the breakout level holds will become clearer in the coming days.