Ethereum’s Key Support Test: Breakout or False Alarm?

Ethereum’s Key Support Test: Breakout or False Alarm?

Ethereum, the second-largest cryptocurrency by market capitalization, finds itself at a pivotal juncture. Following a significant breakout from a long-observed rising wedge pattern, the digital asset is currently undergoing a crucial retest of a key support level. This moment is not merely another price fluctuation; it represents a decisive point that will determine whether the recent bullish momentum will endure or if the breakout will ultimately prove to be a false signal. With the price hovering around the critical $3,900–$4,100 range, market participants are closely watching to see if Ethereum can solidify its gains and pave the way for new all-time highs. The Rising Wedge Breakout and Its Critical Retest For weeks, Ethereum’s weekly chart displayed a rising wedge formation. This technical pattern is typically viewed by analysts with a degree of skepticism, as it often precedes a bearish reversal, suggesting that buying pressure is losing steam despite rising prices. However, in a s…