Ethereum Reclaims $3K: Key Levels & Bullish Signals Analyzed

Ethereum’s recent price action shows the cryptocurrency bouncing cleanly from the $2,600–$2,500 demand zone, now trading just above the $3,000 mark. This places ETH at the edge of what was previously a support zone that has now turned into resistance. The daily chart reveals that ETH is pushing toward the 200-day moving average located around $3,500, which represents a key psychological threshold for traders and investors alike.

The daily Relative Strength Index (RSI) has recovered from oversold territory and currently prints at 42.91, indicating some bullish momentum returning to the market. However, this reading remains insufficient to confirm a full trend reversal. Structurally, the daily chart continues to display lower highs and lower lows, suggesting buyers need to push decisively above the $3,500 range to establish a genuine shift in market structure. Failure to overcome this resistance could see sellers re-enter the market aggressively, with the $2,500 demand zone serving as critical support and $2,100 acting as a final defensive line.

On the 4-hour chart, Ethereum has been trading within a clean rising channel since bouncing from around $2,600. The current structure resembles a bearish flag pattern, which typically indicates continuation of the previous downtrend. However, if buyers can break and maintain levels above $3,200, this bearish setup could be invalidated, potentially triggering a stronger push toward the $3,500 region.

The 4-hour RSI reading of 64.42 suggests Ethereum is nearing overbought territory, indicating potential for a short-term pullback or consolidation period. The asset is currently consolidating within the resistance block, with the $2,800 short-term low serving as the first critical level to watch. Any failure to hold this zone could trigger another downward leg toward the $2,500 demand zone, making current price action particularly sensitive to both technical breaks and broader market sentiment.

From an on-chain perspective, Ethereum’s exchange reserves have continued declining at an astonishing rate, hitting a multi-year low of approximately 16.8 million ETH. This consistent outflow from trading platforms represents a strong long-term bullish signal, indicating that investors are increasingly moving their coins into cold storage or staking protocols rather than preparing for immediate selling.

Historically, such supply contractions on centralized exchanges have preceded major rallies in Ethereum’s price, though the timing of such moves remains uncertain. This fundamental supply dynamic adds a bullish undertone to Ethereum’s broader outlook, particularly if macroeconomic risk factors begin to ease. The divergence between short-term technical challenges and long-term fundamental strength creates a complex trading environment where both timing and conviction levels will prove critical for market participants.