Usman Salis
Ethereum (ETH) has broken out of a descending wedge formation and is now challenging a significant resistance zone at $4,750. This technical development represents a potential turning point for ETH's price trajectory.
Technical Breakdown and Current Position
ETH consolidated for weeks between $4,050 and $4,300, forming a descending wedge pattern. According to trader Anup Dhungana's analysis, the breakout above $4,300 came with strong volume and bullish momentum, confirming the move's validity.
ETH is now testing the $4,750 resistance zone, which coincides with the previous local high. A decisive close above this level could open the path toward $5,000, representing approximately 5% upside potential.
However, if rejected at this resistance, ETH may retrace to retest the $4,300 support level before resuming its upward trend. This zone now acts as crucial support, having transformed from resistance following the breakout.
The current consolidation below resistance suggests healthy price action, with market participants watching for either a breakthrough above $4,750 or a pullback to support levels.
Key Price Levels and Market Sentiment
The $4,750 resistance level has proven significant in previous trading sessions, acting as a ceiling for bullish momentum. Breaking above this zone would likely trigger additional buying interest and could accelerate ETH toward the psychological $5,000 target.
On the downside, the $4,300 level remains the primary support to watch. This area previously served as strong resistance and should now provide buying opportunities if tested. A break below this support could signal a deeper correction toward the $4,050 zone.
Trading volume has increased during the recent breakout attempt, indicating growing market interest. However, sustaining momentum above key resistance levels will be crucial for confirming the bullish continuation pattern and attracting institutional participation.
Usman Salis
