Ethereum Primed for Bullish Continuation: Multi-Timeframe Breakout Analysis

Step 1: Trend Analysis

Long-Term (Daily)

• From late February to mid-March, ETH saw repeated high volatility and strong downtrend, bottoming out near $1,400–$1,500 in early April after a series of sharp drops (especially the crash from $2,800+ toward $1,400 in under two months).
• From mid-April, a steady recovery is apparent; ETH climbs from the sub-$1,600s to retake $2,000 post-04/21, reaffirming an upward reversal in medium-term structure. Marching through May, ETH returns to the $2,600s–$2,700s—retracing almost 100% of its prior crash move.

Recent Action (H4 + Hourly)

• May 20–22: Bullish momentum accelerates. Price surges from ~$2,524 to $2,690, peaking today.
• Recent volatility (last 24H) is marked by a rising high, peaking at $2,690, followed by a minor pullback to the current $2,640, with intraday highs and lows staying progressively elevated.

Step 2: Key Support and Resistance Levels

• Resistance: $2,690 (recent high), $2,750 (mid-March swing high)
• Support: $2,600 (recent support, several retests in H1/H4), $2,520 (former range resistance), $2,450 (major H4 structure support)

Step 3: Moving Averages

• Short MA (10/20-Period, H4): Both MAs are upward sloping, with price respecting these as dynamic support. Price remains above the 20-period MA (approx. $2,600), short-term strength confirmed.
• Longer MA (50/100-Period, Daily): 50-MA crosses above 100-MA, confirming a medium-term bullish reversal.

Step 4: Volume Profile

• Large volume spikes during mid-May's upmove (May 8–13 and May 21–22) confirm institutional conviction in trend reversal and breakouts.
• Highest recent volume on the surge from $2,200 to $2,600 signals new buyers entering en masse, supporting further uptrend.

Step 5: Oscillators (RSI, MACD)

• Daily RSI: Currently just under 70 (approx. 67–69) based on the price move—momentum is strong but approaching overbought territory, indicating room for more short-term upside but caution for late entries.
• MACD (H4 & Daily): Wide positive histogram, bullish crossover confirmed, no sign of a bearish cross; upward momentum dominant.

Step 6: Chart Patterns and Price Behavior

• Clean bullish flag/pennant forms after each rally (see H4, e.g., May 13–15, May 19–21), all result in further breakouts upward.
• Current price action (last few hours): Price consolidates in a narrow range ($2,630–$2,670) after the upthrust; a textbook bullish continuation pattern playing out.

Step 7: Fibonacci Retracement

• Pulling Fib from swing low ($1,400 in April) to recent peak ($2,690):
  • Key retracement levels: 38.2% at $2,243, 50% at $2,045, 61.8% at $1,850. None have been retested since May's breakout, underscoring trend strength; next logical extension is the 1.618 fib at $2,950.

Step 8: Sentiment and Additional Factors

• Volume and price expansion are aligned.
• No evidence of strong distribution at local highs; order flow and candlestick structure show shallow retraces and quick absorbtion of selling pressure at each dip.

Step 9: Combined Synthesis

• The multi-timeframe analysis, moving averages, bullish price structure, strong oscillator momentum, volume confirmation, and lack of vested sellers at highs all point to higher prices.
• Short-term (3–24 hours), a minor pullback/consolidation towards $2,620–$2,630 is possible, yet overall setup remains extremely favorable for trend continuation toward and above the $2,700–$2,750 region.
• Risk management is prudent as RSI is near overbought, but no signals for reversal—use trailing stops if entering now.

Step 10: Strategy, Entry & Target

• Optimal Setup: Enter long on a mild retracement in the $2,630–$2,640 range to capture both support and momentum.
• Targets: Primary take-profit at $2,720 (recent high). Secondary target at $2,800 (mid-March resistance, plus potential for new highs if volume confirms breakout).

— Conclusion: The uptrend is strong; momentum and price structure favor further upside. Enter on shallow pullbacks; risk managed below $2,600.