- •Ethereum has overcome a multi-year declining trend, and the structure of the monthly chart has changed from bearish to bullish.
- •A retest of a major demand zone gives an opportunity and enables buyers to confirm the bullish direction of Ethereum and its ability to move up in the long run.
- •Monthly charts indicate that the Ethereum macrotrend is bullish despite the volatility in the short term, with an accent on long-term levels rather than minor fluctuations in prices.
Ethereum ($ETH) remains strong after dodging a long-term downtrend. The market is retesting an enormous demand zone, which is likely signaling that the macro bull trend isn't over yet. Traders will be watching these levels closely this week for confirmation of further price advancement.
Ethereum Breaks Long-Term Downtrend
Ethereum surged past a gray downtrend line that had taken the market lower for years. This is confirmation of a shift in market structure from bearish to bullish.
The breakout is of more importance, as trendline breaks on a monthly chart reflect general market sentiment
$ETH's movement above the long-term trendline aligns with observations shared on social media. EtherNasyonaL noted, "$ETH the big picture is still in play. After breaking out of its long-standing downtrend, Ethereum is currently only retesting the demand zone and trend line."
Retesting a Key Demand Zone
After the breakout, Ethereum is retesting a demand zone near the former trendline. Buyers tend to step in at these levels, supporting the price.
This green-shaded area on the chart has historically absorbed selling pressure. Its presence reinforces confidence among macro investors that support remains strong.
Retests such as this are a normal part of bullish market behavior. They allow the market to validate support levels before resuming upward movement.
Healthy Pullback Within a Bullish Structure
Ethereum's present correction is simply a function of a larger bullish cycle. Short-term price changes do not represent a change in momentum.
The monthly chart remains bullish. Viewing from this standpoint allows investors to focus on longer-term price action instead of short-term fluctuations.
Ethereum's current price of $3,940.64 and a 24-hour trading volume of $49,729,309,660 are a sign the market is healthy, and macro investors may be seeing if bullish momentum continues from these levels.