Ethereum is showing renewed strength as it stabilizes after months of choppy trading. While recent technical improvements suggest momentum is shifting in favor of buyers, key resistance levels remain overhead, meaning the recovery looks promising but is not yet fully confirmed.
### Market Structure Remains Unconvincing Despite the Bounce
In a recent update, crypto analyst Luca expressed caution about Ethereum’s current market structure. Although the price has technically broken above the 1D Bull Market Support Band—a zone that has acted as a reliable reversal point in recent months—Luca is not convinced of a broader trend change.
The main hurdle for a clear bullish reversal is the 0.618 Fibonacci Point of Interest (POI) at $3,120. Luca stresses that Ethereum must firmly reclaim this level to shift shorter-term sentiment. Until this price is secured as support, the risk remains high that the current move is a false breakout.
Drawing parallels to Bitcoin’s current state, Luca suggests the most prudent approach for investors is to stay defensive, as the market has yet to confirm a breakout above this Fibonacci resistance. This cautious stance aims to guard against emotional trading during a period of high uncertainty and potential volatility.
To manage risk, Luca is keeping a cash reserve to hedge spot holdings in case of a rejection. A failure to hold current levels could trigger a deeper pullback toward the previous high-timeframe resistance range near $2,700 before a more sustainable upward reversal takes shape.
### Ethereum Starts 2026 with a Key Trend Shift
According to StockTrader_max, Ethereum has begun 2026 on a positive technical note. ETH has recorded its first daily close above the 50-day moving average since October 9, a period marked by a liquidation-driven shock that affected the broader crypto market. This close represents a meaningful shift in trend behavior after months of trading below key short-term averages.
From a bullish perspective, reclaiming the 50-day MA is precisely the kind of confirmation sought after an extended corrective phase. It signals improving momentum and suggests buyers are starting to regain control, potentially setting the stage for a more sustained recovery rather than a short-lived bounce.
Looking ahead, StockTrader_max highlighted the 200-day moving average around $3,550 as the next major upside target. As capital begins to rotate back into Ethereum and risk appetite improves, the analyst expects price action to move toward this level in the coming sessions.
Frequently Asked Questions
Frequently Asked Questions About Ethereums Momentum
BeginnerLevel Questions
What does it mean that Ethereum is regaining its momentum
It means that after a period of slower growth or decline in price development or user activity Ethereum is showing strong signs of recovery and increased positive interest
What are the main reasons for Ethereums recent positive momentum
Key drivers include the successful transition to a more energyefficient ProofofStake system growing activity in decentralized finance and NFTs on its network and anticipation for future technical upgrades
Is now a good time to invest in Ethereum
This is not financial advice Cryptocurrency investing carries high risk While momentum appears positive prices are volatile You should only invest what you can afford to lose and do your own research
What is ProofofStake and why is it important for Ethereum
ProofofStake is the system Ethereum now uses to secure its network and validate transactions It replaced the old energyintensive ProofofWork system making Ethereum 9995 more energy efficient and setting the stage for better scalability
Intermediate Advanced Questions
What specific challenges do bulls still face
Major challenges include high network transaction fees during peak times increased competition from other blockchains potential regulatory uncertainty and the need to successfully implement future scaling upgrades
What are these scaling upgrades everyone talks about
These are technical improvements primarily Ethereum 20 upgrades like danksharding designed to significantly increase the number of transactions the network can handle per second and reduce costs without compromising security or decentralization
How does competition from other blockchains affect Ethereum
Other chains often market themselves as faster and cheaper This competition pressures Ethereum to deliver on its scaling roadmap and can temporarily draw away developers and users However Ethereums massive existing ecosystem and security are its main advantages
What role does regulation play as a challenge
Governments worldwide are still figuring out how to regulate cryptocurrencies Unclear or harsh regulations on staking DeFi or token classification could create uncertainty and impact Ethereums growth and adoption
Are high gas fees still a problem
Yes While improvements are coming fees can still spike during times