Ethereum's price structure indicates consolidation below $4,811, with bullish divergences emerging on lower timeframes. A confirmed breakout from this consolidation could propel Ethereum's rally towards the $8,557 projection. Rising trading volume and consistent supply stability further reinforce Ethereum's current bullish technical setup.
Technical Setup and Structural Reset
Ethereum recently tested and briefly surpassed a crucial resistance level at $4,811.71 before experiencing a retracement. According to technical analyst @JavonTM1 (Javon Marks), the asset treated this level as "a light resistance" after the move. Lower-timeframe divergences are now suggesting a potential return of buying pressure. Marks further projected that a 40 percent move could lift Ethereum towards $8,557.68.
This key technical level coincides with Ethereum's previous cycle high, marking it as a pivotal price zone for traders. Following the brief breakout attempt, Ethereum has entered a corrective phase that appears to be forming a consolidation pattern rather than a trend reversal. Price action within this range suggests the market is processing profit-taking while maintaining its broader bullish structure.
Momentum indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), have cooled down after the prior rally, facilitating a structural reset. With the price forming higher bases above accumulation levels, Ethereum's technical setup bears resemblance to conditions observed before significant upward continuations in past market cycles.
Bullish Divergences and Breakout Potential
Lower-timeframe charts are now exhibiting clear bullish divergences, a pattern where momentum increases even as price action flattens or declines. This formation often signals a return of buying strength after a period of selling exhaustion. When such divergences occur near key support zones, they frequently precede renewed uptrends.
The resistance at $4,811.71 remains the primary focus. While multiple attempts to close above this level have resulted in short-term rejections, each subsequent correction has found higher support levels. A decisive daily close above this critical level would confirm the continuation of Ethereum's larger trend, potentially paving the way for a move towards $8,557.68.
From a structural perspective, this scenario aligns with a classic "coiling" pattern, characterized by price tightening and momentum compression, which typically precedes a breakout. With the asset maintaining its bullish integrity, the probability of a substantial continuation appears to be supported by improving technical momentum.
Market Context and Price Structure
At the time of reporting, Ethereum was trading at $3,416.33, reflecting an approximate daily increase of 5.1%. The 24-hour trading range, spanning from $3,199.47 to $3,471.36, indicates sustained buying pressure and high trader participation across exchanges. Trading volume has risen to approximately $35.54 billion, signifying renewed and active engagement from traders.
Ethereum holds a market capitalization of around $412.4 billion, with 120.69 million coins currently in circulation. The network's deflationary tokenomics, driven by its burn mechanism, continue to underpin value stability, especially during periods of rising demand. With its fully diluted valuation matching its market cap, the risk of significant dilution appears minimal.
Market sentiment has shifted towards cautious optimism as Ethereum consistently trades above the $3,400 mark. Continued strength above this level could signal an upcoming run towards the $3,500–$3,600 range, potentially setting up a retest of $4,000 in the near term. If the breakout above $4,811.71 is sustained, technical targets suggest $8,557 as the next significant measurable objective within Ethereum's long-term price structure.