Ethereum Hits Major Level After Biggest Weekly Candle In Years – What Comes Next?

Daan cautions that while the move is impressive, the next phase is about managing volatility: “Play this level by level,” he advises, “and watch for next week to develop to see where these alts are going to get picked up after the squeezes are done.”

This moment is crucial not only for Ethereum but also for the broader altcoin market. ETH‘s recovery is often a leading indicator of renewed risk appetite and capital rotation into smaller assets. With bulls now in control and price pressing into a key supply zone, how Ethereum behaves over the coming days could determine whether altseason truly begins—or whether this rally was just a reaction to overly bearish positioning. Either way, ETH’s strength has put the market back on alert.

Technical View: Price Surges Above Weekly Moving Averages

Ethereum is showing clear signs of recovery on the weekly timeframe, breaking decisively above the 200-week exponential moving average (EMA) and simple moving average (SMA) for the first time since its downtrend began earlier this year. After reaching a weekly low below $1,400 just a few weeks ago, ETH has rallied aggressively, closing this week near $2,555—a 45% surge that marks its most explosive candle in over a year.

ETH pushing above the 200-week MA | Source: ETHUSDT chart on TradingView

The chart shows ETH pushing past the 200-week EMA at ~$2,259 and reclaiming the 200-week SMA at ~$2,451. Analysts often use these two long-term trend indicators to distinguish between bear and bull market phases. Ethereums ability to close above both signals a potential shift in sentiment and structure, especially after months of lower highs and declining volume.

Volume on this breakout is also notable. The past two weeks have seen a significant uptick in participation, suggesting this move isnt just a short squeeze, but potentially the start of a broader recovery trend. ETH still faces resistance in the $2,700–$2,800 zone, but reclaiming this range could open the door for a sustained rally into Q3. The next few candles will be key in confirming this bullish reversal.