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Ethereum News Today: ETH Climbs After Hitting Key Support Near $2,640, Is the Breakout Imminent?
Ethereum moved off a major support area near $2,640 after weeks inside a steep falling channel. The token climbed toward the 0.236 Fibonacci retracement level at $3,021 as traders observed early signs of a possible trend shift. Price action showed several failed attempts to break lower, and buyers reacted once the chart reached the broad support band. The rebound now raises one question for traders seeking direction: can Ethereum maintain momentum above key Fibonacci levels?
Price Rebounds Inside Tight Recovery Structure
Ethereum traded within a downward channel through November. Each swing low formed inside the descending trend lines. The structure stayed intact until the price touched the wide support zone between $2,640 and $2,700. This level aligns with previous accumulation activity.
Price printed several short candles after bouncing from the low. The move marked the first clean break from the channel in weeks. Traders monitored the shift closely due to the repeated failures near the lower line.
Ethereum reached $3,039 during the session. This placed the price just above the 0.236 Fibonacci retracement level at $3,021. The Fibonacci grid stretched from the recent local high near $4,253 down to the $2,640 low. The next levels sat at $3,256, $3,447, and $3,637. Each level acted as potential resistance in previous cycles.
Market Structure Shows Clear Zones of Supply and Demand
A major supply zone remained overhead between $3,900 and $4,250. This zone aligned with multiple rejection points on the chart. Price struggled to hold momentum inside this region in past attempts. The zone also aligned with the 0.786 Fibonacci level at $3,908 and the 1.0 extension at $4,253.
Below the current price, the chart displayed a broad demand area extending toward $2,640. This area contained several long lower wicks. Each wick signaled strong buying pressure near the floor of the range.
Price action between September and November created a clear swing structure. The sequence moved from higher resistance near $4,253 into lower highs inside the falling channel. The recent bounce attempted to break that pattern. Traders watched to see if the structure shifted toward higher lows.
RSI Improves After Reaching Oversold Territory
The RSI on the daily chart stood at 42.06. The signal line read 34.88. The indicator showed steady improvement from recent lows reached near the bottom channel line. The RSI trended upward as the price exited the falling structure.
Short periods of consolidation appeared on the RSI earlier in the month. Each consolidation aligned with price hesitation around minor support levels. The rebound near $2,640 also matched with rising RSI lows.
The RSI has now moved toward the midpoint of the range. Traders used the indicator to gauge whether momentum supported continuation. Any move above 50 would create a shift toward neutral conditions. A break above that zone often appeared near larger directional pivots in past cycles.
Read More: Why Ethereum is Undervalued and How it Affects Crypto Payroll
Conclusion
Ethereum moved off the $2,640 support zone and advanced toward the 0.236 Fibonacci level while the RSI shifted toward mid-range strength. The chart now shows early recovery signals as traders watch whether the price can build momentum above nearby resistance for a clearer direction.
