ETH Breaks Falling Wedge and Sets Path Toward $3,800 Price Level

Ethereum broke above a strong resistance and buyers are now aiming for the next zone near $3,800 soon.

Support between $2,560 and $2,855 has been tested and held well which strengthens the current uptrend.

Indicators and trendlines point to growing momentum and a possible move to $3,200 if price stays firm.

Ethereum (ETH) has broken above a key resistance at $2,787, indicating a strong bullish trend as it targets the $3,800 range. The breakout follows a sustained upward channel that formed after a rounded bottom, supported by a steady ascending trendline. Technical indicators now suggest a surge could follow if ETH holds above the $2,855 zone.

Source: X

The chart reveals a confluence of support structures, including a long-term white curved base and dual ascending green trendlines. ETH’s hourly RSI now sits at 72.7, reflecting heightened buying interest. A blue price projection path shows Ethereum could reach $3,800 if bullish momentum sustains.

A pivotal question remains: can Ethereum sustain this momentum to break above $3,000 and test new yearly highs?

Support Structures and Trendlines Provide Clear Price Roadmap

Multiple trendlines converge beneath the current price action, pointing to strong technical support between $2,400 and $2,600. The green horizontal support line around $2,560 has held firm through numerous retests in June and July. This has allowed buyers to establish a higher base each time ETH dips.

A secondary ascending green trendline from mid-April to July supports this momentum. It intersects with the more aggressive white ascending support line, offering additional confluence. These combined levels reduce downside risks while favoring further upward movement.

The broader market structure also reflects a bullish breakout from a falling wedge pattern seen in April. Since then, ETH has posted higher highs and higher lows, solidifying the reversal. All short-term dips have been absorbed near the rising trendlines, signaling healthy accumulation phases.

Volume analysis further supports the bullish outlook. Volume surged during the initial breakout past $2,600 and remains elevated. This suggests strong buyer interest at current levels. If ETH closes hourly candles above $2,855, it may act as a launchpad toward $3,000 and beyond.

Indicators and Price Projection Signal Strong Upside Potential

A key feature of the chart is the blue projected line, forecasting a price rally toward $3,800. This aligns with the macro breakout pattern and continuation of Ethereum’s bullish structure. Should the price exceed $2,855 with conviction, a path to $3,200 becomes more likely in the short term.

The RSI indicator adds another layer of confirmation. A clear bullish divergence formed between late June and early July as price moved sideways while RSI climbed. This divergence suggests that buyers are steadily regaining control. The current RSI level of 72.7 reflects overbought conditions, but in bull markets, this can persist longer.

Historical resistance between $2,850 and $2,900 is the final barrier before ETH targets the $3,200 mark. Once cleared, the next resistance band lies between $3,400 and $3,800. The chart structure projects this move with clean wave progression visible in the projected path.

SMA 200 and EMA 21 are pointing upward, further supporting the continuation pattern. Momentum remains with the bulls. The bullish structure only weakens if ETH falls below $2,600 with high volume, which is not currently supported by the trend.