Ethereum is showing signs of recovery as it maintains levels above the 200-day exponential moving average (EMA), a key technical marker it has struggled to hold since May 2025. Traders and investors are watching closely, as this could indicate a more stable upward trend rather than temporary spikes.
Ethereum Breaks Long-Standing Barrier
It is worth noting that for the past eight months, Ethereum repeatedly approached the 200-day EMA but failed to stay above it, with every rally either stalling or facing strong selling pressure.
Currently trading around $3,350, Ethereum is holding slightly above this critical level. Unlike previous attempts, the price is not experiencing sudden sell-offs or sharp wicks. Instead, the cryptocurrency shows signs of steady positioning.
Market watchers point out that controlled movements above this boundary suggest that sellers are losing dominance, and the market structure is beginning to favor buyers. Since the December low, Ethereum has consistently printed higher lows, reinforcing the possibility of a slow shift in trend.
In related news, Staked Ethereum has reached 36 million ETH, nearly 30% of the total supply, worth over $118 billion, reflecting growing confidence in the network.
Market Indicators Suggest Gradual Recovery
Supporting the shift, Ethereum’s 50-day and 100-day EMAs are starting to flatten and turn upward. This indicates a reduction in downward momentum. Trading volume has increased modestly, signaling steady interest without the erratic spikes seen in leverage-driven rallies.
Observers caution against expecting sharp price jumps at this stage. Instead, consolidation above the 200 EMA is viewed as the healthiest scenario.
This gradual acceptance allows Ethereum to transform resistance into support, increasing the likelihood of continued upward movement during minor pullbacks.
Key Levels to Watch for Investors
Investors should monitor the 200-day EMA closely, as a clear move below this level, particularly with high selling volume, could push Ethereum back to the low $3,000 range.
On the upside, maintaining levels above the EMA opens the possibility of a wider trend reversal. Historically, when Ethereum recovers this benchmark, it does not surge immediately to previous highs but moves steadily.
Market participants now point to the mid-$3,600 to $3,800 range as a likely focus for the coming weeks, making this period critical for market positioning.
Notably, on a broader perspective, market watchers see 2026 as a potential breakout for Ethereum. Reaching $40,000 by 2030 would be a huge gain, driven by adoption, upgrades, and institutional interest.