Ethereum has decisively broken above the critical $2,819 resistance level that capped price action for months, confirmed by an impulsive breakout candle and sustained acceptance above this threshold. The breakout flips this zone into potential support, with a successful retest potentially propelling ETH toward the next major resistance near $3,600. Technical significance stems from the confluence of factors at $2,819 – including value area high, multi-month resistance, and prior structure highs – reinforcing the breakout's validity.
Meanwhile, Bitcoin surged past $122,000 after exiting a descending channel and forming a bullish cup-and-handle pattern, targeting $134,500. BTC currently consolidates near $117,000 (-4.3% intraday), with immediate resistance at $122,000-$123,000 and crucial support at the 50-day moving average ($108,000). Ethereum additionally cleared the $3,000 psychological barrier, breaking a bullish flag formation with technical targets extending to $3,834, supported by robust ETF inflows and institutional demand.
Both assets show mixed momentum signals: Ethereum's RSI approaches overbought territory at 67, while Bitcoin's RSI sits at 76, indicating overbought conditions. MACD and Stochastics suggest short-term weakness, though all major moving averages remain upward-sloping. This week's U.S. CPI data and regulatory developments could inject volatility, with Ethereum's price action hinging on $2,819 support integrity and Bitcoin's trajectory dependent on a confirmed breakout above $123,000.