Ethereum (ETH) Jumps 35% as Bullish Momentum Builds

Ethereum (ETH) has gained strong momentum following key fundamental developments in the United States, including plans to increase the volume of government bond buybacks. The news has contributed to improved sentiment across the cryptocurrency market, while Ethereum has also strengthened from a technical perspective.

ETH has now closed above a key previous high in its broader price structure, leaving both its shorter-term and broader market structures looking bullish. However, after gaining more than 35% during its latest move, the question is whether Ethereum can extend the rally directly or first enter a period of correction.

Ethereum (ETH) technical analysis

ETHUSD - 1 Day Time Frame

The current bullish move is particularly notable due to its size, with Ethereum gaining more than 35% during the latest upward impulse. Following such a sharp increase, the possibility of a short-term correction could rise as some traders take profits and the market absorbs the recent gains.

A potential correction could provide a more favorable entry point while keeping the broader bullish structure intact. One possible area to watch is around $2,250, where renewed buying interest could support another move higher. Alternatively, traders considering the current bullish setup could divide an entry into two parts, with one portion entered around the current price and another reserved for a potential correction toward $2,250.

For both approaches, a potential Stop Loss could be considered below the beginning of the latest bullish move, around $1,850. A daily close below this area could significantly weaken the current bullish structure and reduce the likelihood of continued upside.

Ethereum (ETH) price target

If Ethereum maintains its bullish structure, the first potential upside target is the Buy-Side Liquidity area around $3,040. A continuation beyond this level could bring the next targets around $3,450 and $3,650 into focus. Further bullish momentum could eventually open the way toward $4,250, representing the highest of the identified Buy-Side Liquidity targets.

Ethereum's recent structural improvement supports a positive outlook, but the strength of the latest 35%+ move also makes the possibility of a short-term correction worth considering. A controlled pullback that preserves the broader bullish structure could provide a more attractive entry opportunity, while continued strength without a significant correction could keep attention on the upside targets between $3,040 and $4,250.

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