ETH Technical Setup: Breaking Resistance Bands and What Comes Next

2025-12-26 21:20:25

Market Snapshot

Ethereum is currently trading at 4,293 USDT with a daily gain of 1.73%. Trading activity shows a volume of 2.461 billion with signs of healthy expansion, while net capital flows remain slightly negative at -8.09 million USD, suggesting limited selling pressure in the short term. The overall momentum leans bullish, particularly after today’s significant price action.

Multi-Timeframe Technical Analysis

1-Hour Chart: Short-Term Strength

The shorter timeframe tells an encouraging story. Using standard Bollinger Band parameters, ETH has rebounded decisively from the intraday floor of 4,166 and now trades comfortably above the 4,265 middle band. The bands themselves are expanding upward, a classic sign of building momentum.

Key technical levels on this timeframe:

Upper Resistance Band: 4,343 (aligns with today’s high near 4,349)
Middle Support Level: 4,265
Lower Support: 4,186

The price is operating between the middle and upper bands, which typically indicates a healthy uptrend within the short resistance bands range.

4-Hour Intermediate Analysis

Zooming out to the 4-hour timeframe, the picture becomes even more compelling. Ethereum has established a crucial support zone at 4,173—this has proven instrumental during the August 1-5 recovery phase. With price currently hovering around 4,290, well above this key level, the intermediate trend remains solidly bullish.

The upper band resistance sits at 4,395. If the 4,173 support holds firm, traders should watch for an advance toward this 4,395 target. However, a breakdown below 4,173 would signal caution and potentially trigger a pullback toward the 4,000 psychological level.

Daily Timeframe: Structural Breakout

Here’s where things get significant: ETH has just broken through the daily upper Bollinger Band at 4,281. This is a breakout pattern, with the bands now expanding upward and opening longer-term appreciation potential.

Daily resistance ceiling sits at 4,349 (historical high), while the recently penetrated 4,281 level now functions as dynamic support.

Projected Price Scenarios for the Evening

Bullish Case (Probability Higher)

A pullback to the 4,265-4,280 zone—where both the 1-hour middle band and the daily breakout level converge—could offer an attractive entry point. From this support, the next leg targets 4,343-4,349. If that resistance cracks, the door opens toward 4,400 and beyond.

Cautionary Case (Risk Scenario)

Should price stall around 4,349 and reverse, watch for support at 4,265-4,230 (the 1-hour middle band and prior consolidation zone). If this area fails to hold, further weakness toward 4,186 becomes plausible.

Actionable Trading Approach

For those looking to capitalize on upside momentum: enter dips at 4,265-4,280 with stops placed at 4,230, targeting the short resistance bands near 4,343-4,349.

For those playing the potential correction: wait for price to test 4,343-4,349, then short with a stop at 4,380, targeting a retrace to 4,280-4,265.

Critical Risk Management Note

Cryptocurrency volatility demands discipline. All positions require strict stop-loss placement—no exceptions. Avoid holding through uncertainty without a defined exit plan.

ETH-1,6%

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