Ethereum is at a critical technical juncture as conflicting signals emerge from prominent analysts. On one hand, the SuperTrend indicator has flashed its first buy signal since May, suggesting bullish momentum is returning. On the other hand, an analyst warns that a potential breakout above a key descending trendline could be a 'trap' leading to a sharp reversal.
SuperTrend Buy Signal Arrives
According to analyst Ali Charts on X (formerly Twitter), the daily SuperTrend for Ethereum has turned green for the first time since May of the previous year. This development indicates that 'momentum is finally shifting back to the bulls,' as Ali Charts stated. The signal suggests that the long consolidation period Ethereum has experienced may be ending, potentially ushering in a new upward trend. However, traders are urged to look for stronger demand and higher closes for confirmation. Key levels to watch include support near $1,850 and resistance near $4,709. The MVRV ratio for ETH has also recently dropped below 0.8, a level that historically preceded significant rallies in past cycles.
Caution Advised Amid Trendline Approach
Simultaneously, analyst MoreCryptoOnline on X has issued a stark warning. Ethereum is approaching a descending trendline that has been in place since October, which has capped multiple recovery attempts. The analyst cautions that a clean break above this trendline without five completed Elliott Waves to the upside is likely a 'fake breakout' or 'trap dressed as momentum.' The scenario described involves ETH briefly overshooting the trendline by 10–30% before a sharp sell-off. According to this analysis, a genuine directional shift requires the structural integrity of five completed waves; anything less is considered noise that will be quickly faded. This warning aligns with the idea that a breakout 'everyone has circled on their charts' often becomes a liquidation event for late buyers.
Technical Landscape and Key Levels
Ethereum's price currently sits near the $2,318 mark, holding above a long-term ascending trendline and within an accumulation zone between $1,350 and $1,850. The first major resistance to reclaim is $2,356, followed by $2,647 and $3,639. A move above the previous high near $4,900 could support a larger breakout. On the downside, key support is at $1,850, with stronger support near $1,350. A loss of this zone would weaken the current bullish setup.
Analyst Crypto Patel also shares a long-term bullish view, stating that ETH is 'quietly doing what life-changing assets always do: building a massive base before the real move starts.' He projects targets of $10,000 to $20,000 for ETH this decade.
