Ethereum Bounces From Macro Support Zone — Is a Major Rally Coming?

Ethereum has just tapped a historically significant support zone and bounced upward, signaling a potential bottom and the start of a major bullish reversal.

Ethereum has just encountered a critical support zone on the macro charts, setting the stage for a potential bottom and the beginning of a major bullish reversal, according to Merlijn The Trader.

As shared by the trader, this green zone has formed the base for every macro bottom in ETH since 2017, with each instance serving as a launching pad for a substantial rally.

Analyzing the weekly chart, Merlijn highlights three prior occasions where Ethereum encountered this support band before pivoting sharply and propelling toward new price peaks.

“This time won’t be different. Let the rally begin,” he adds.

Current Market Status

At the time of writing, Ethereum is trading at $2,512, showing a gain of 39.3% over the past month, according to CoinMarketCap data.

The recent surge from under $1,900 earlier in May marks one of the strongest monthly performances ETH has seen this year.

Meanwhile, Ethereum’s market cap is currently at $303 billion, and 24-hour trading volume is around $13.1 billion.

Technical Setup Aligns With Bullish Sentiment

Merlijn’s long-term chart showcases a strong technical basis for ETH’s price movements. Typically, when Ethereum bounces off this upward-trending support band, it kicks off extended bullish phases.

Now, as the macro pattern reappears and technical momentum aligns, traders are keen to see if this time will be any different.

Moreover, the trader notes that the macro pattern has formed once again, and with technical momentum also present, bulls are looking for confirmation to continue. Especially as Ethereum now has the $2,600-$2,800 range in its sights.

However, whether this rally follows the historical script remains to be seen, but at least for now, both momentum and sentiment are visibly on Ethereum’s side.