Why Is Ethereum Price Pumping?

The recent price of Ethereum has been stirring up discussions again, and traders are being cautious. The price action looks chillingly comparable to the legendary 2020 setup, hinting at a potentially explosive move. With trading volume up 3.70%, market activity is heating up, and if the price of Ethereum catches up to the broader pump, things could escalate. But is this just a fakeout, or are we witnessing the start of something much bigger?

https://x.com/misterrcrypto/status/1889661232329752616

Ethereum’s price has been declining in a downtrend, frequently making lower highs and lower lows. A Break of Structure predicts that bears have been in control, but something interesting is happening, ETH price is fighting to recover key levels.

If history repeats itself, this setup could mirror the 2020 accumulation phase, where the price of ETH consolidated before a massive breakout. The current Fibonacci retracement aligns with this theory, showing potential resistance levels that ETH needs to clear before the real fireworks begin.

Ethereum’s price is finding it difficult to get past the $2,650 — $2,700 resistance, a make-or-break zone that needs to act as support. After this are the next hurdles at the $2,800 — $2,900, a confluence of Fibonacci levels and previous structure, and the $3,088 — $3,400 range, historically a powerful resistance zone.

If the price of Ethereum manages to claim these levels, there is a massive amount of profit that can be gained with Fibonacci extensions reaching $4,000 and more. However, if ETH can not maintain above the $2,500 line, there will still be greater losses on the horizon.

The candlestick patterns reveal that Ethereum has made attempts to make a recovery but faced rejection near the 0.786 Fibonacci level at $2,961.93. This indicates that buyers are stepping in, but the market is still cautious.

Despite this, trading volume is up by 3.70%, signaling increased market participation. If volume continues rising, momentum could rise in favor of the bulls, pushing ETH towards a breakout.