The past three times this has happened, the price has bounced strongly to the $3,000 – $4,000 level. These two recent bullish breakouts have now confirmed this bullish outlook.

The next target for ETH would be the 200-day EMA, which currently sits at $3,056. This translates into a 54.7% upside potential based on current levels.

Momentum indicators are quite strong and favor a bullish scenario as well. The RSI is now nearing overbought levels. Coming out of a strong downtrend, this is a big buy signal as it confirms that the trend reversal is strong enough to trigger the beginning of a bullish cycle.

In the hourly chart, the structure is quite bullish as well and there’s significant room for a pullback so late buyers can still enter the rally. There are two big fair value gaps (FVGs) that could serve as support if the price drops in the following hours.