Overview
Ethereum's native token, Ether (ETH), has recently climbed above the $3,000 mark for the first time since January, following a significant rise from around $2,500. This surge is attributed to Bitcoin's (BTC) record highs, increased ETF inflows, and Treasury accumulation.
Current Market Dynamics
Despite the recent gains, Ethereum faces a critical resistance level at a multiyear ascending trendline, which previously served as strong support during accumulation phases since mid-2022. The trendline has now flipped to resistance after a breakdown in April 2025.
Technical Analysis
Ethereum's recent rally brings it back to test this trendline from below. A successful breakout above this level could lead to a broader upward movement towards the $3,500 to $4,100 range, aligning with key Fibonacci retracement levels. Conversely, failing to close above the trendline may result in a price correction towards the 0.382 Fibonacci retracement level around $2,500, especially given the overbought conditions indicated by a relative strength index (RSI) above 70.
ETH/BTC Performance
In addition to its USD performance, Ethereum is showing strength against Bitcoin. The ETH/BTC pair has broken out from a bull flag pattern, suggesting potential for Ethereum to outperform Bitcoin. This breakout indicates a target of approximately 0.0315 BTC, which represents a 25% gain from current levels.
Conclusion
While Ethereum has reclaimed the $3,000 level, the path forward is contingent on overcoming the resistance posed by the multiyear trendline. Traders should monitor these levels closely, as they will dictate the next moves in the market.