- Ethereum breaks $3,816 resistance after a sharp V-shaped recovery from April lows, supported by a rising trendline.
- Price increases 6.67% in 24 hours toward $4,200-$4,300 resistance, with potential to test above $4,600.
- Holding above $3,816 could drive wider market rally; failure risks pullback toward $3,600 and $3,150 support zones.
Ether has surged past the \$3,816 resistance following a steep V-shaped head and shoulders recovery since April lows to \$4,161.94. Good volume, increased trend indicators, and continued positive momentum are setting up the cryptocurrency to receive higher in price to major resistance areas.
Ethereum Breakout Mentioned in Market Update
A market update from Alpha Crypto Signal (@alphacryptosign) described Ethereum’s V-shaped recovery as “played out perfectly” following a breakout above horizontal resistance. The update noted that maintaining above this level could lift the entire cryptocurrency market.
Since the middle of May, the trendline has led to an upward move of the price of Ethereum within the range of $2,100. The 50-day moving average at 3,150.77 and the 9-day exponential moving average at 3,816.11 are on an increasing trend indicating bullish markets. The breakout occurred above $3,816 that has been tested previously, and is now an area of support.
Increased Volume and Key Resistance Zones
Trading volume has grown during the breakout, suggesting strong buyer participation and market commitment. Its trading volume in the last 24 hours is $39.77 billion, and ETH has been growing by 18.30 percent in the previous week.
The second resistance area is between $4,200 and 4,300 as previously sellers halted gains through December of 2024. Provided Ethereum manages to turn this range into support, there is a likelihood that the price would start moving toward rebreaking those highs that are above $4,600.
Potential Market Influence and Risk Levels
The latest breakout can affect global market sentiment because, in the past, the Ethereum rallies resulted in other crypto-currencies rising. The chances are that being able to hold price above the $3,816, will invoke additional buying pressure on the sector.
In case Ethereum is not able to sustain this level, there would be a retest of the price at the trendline of the $3,600 or even at the range of the $3,150-$3,200 support area. The latest volume during 24 hours is $39.76 billion, and ETH has increased by 18.30 percent in the last seven days.
