- Ethereum RSI breaks a year-long downtrend, indicating a shift toward bullish momentum.
- ETH reclaims the $2,500 support and closes above the 21-week SSMA for the first time since late 2024.
- Analysts set the next major target at $4,000, pending a breakout above a key ascending trendline.
Ethereum Shows Potential Momentum Shift After RSI Breakout and $2,500 Support Reclaim
Ethereum (ETH) is exhibiting strong bullish signals after breaking out of a prolonged RSI downtrend and reclaiming the crucial $2,500 support level. This technical improvement marks a renewed phase of market optimism for the world’s second-largest cryptocurrency.
For the first time since November 2024, Ethereum closed above the 21-week simple smoothed moving average (SSMA), flipping a long-standing resistance into dynamic support. According to COINOTAG sources, this technical pivot could fuel a rally toward the $4,000 region, provided bullish momentum holds steady.
Ethereum RSI Breakout Marks a Pivotal Momentum Shift
The Relative Strength Index (RSI) on Ethereum’s weekly chart has decisively broken above a downtrend that began in March 2024. Importantly, the RSI has crossed the 50 level—its first such move in over a year—signaling rising buying pressure and growing investor confidence.
Market analysts emphasize that this breakout complements Ethereum’s price rebound from its April 2025 lows near $1,500. This technical milestone suggests that bulls are regaining control, potentially fueling sustained upward momentum.
Consolidation Above $2,500 and 21 SSMA Strengthens the Bullish Case
After an initial rally, Ethereum faced resistance at the 21-week SSMA near $2,532. The subsequent consolidation above the $2,500 level has been critical in forming a stable base. Closing above this moving average for the first time in nearly eight months is a notable technical achievement, as it historically acted as a strong resistance.
Also Read: Ethereum Price Prediction: Bulls Eye $2,400 as Whales Accumulate in April 2025
Technical experts now view the 21 SSMA as a new dynamic support level, reinforcing Ethereum’s bullish outlook. This positive shift improves the asset’s technical structure and increases the probability of further upward movement.
Approaching a Key Trendline: Will Ethereum Reach $4,000?
Ethereum is now testing a significant ascending trendline that has acted as both support and resistance in the past. A decisive weekly close above this trendline could confirm the recovery of Ethereum’s broader bullish structure, setting the stage for a potential rally toward the $4,000 resistance zone.
This level represents an area where sellers previously capped gains, making it a critical point of interest for both bulls and bears. A successful breakout could invite additional buying interest and strengthen Ethereum’s momentum.
Ethereum’s recent technical breakout—highlighted by the RSI trend reversal, $2,500 support reclaim, and 21 SSMA close—marks a significant shift in market sentiment. With bullish momentum building, the next test lies at the ascending trendline, beyond which the $4,000 level could become the next major target. Investors and traders should keep a close eye on these key technical levels as Ethereum navigates this critical phase in its price trajectory.
