Technical analysis by RexTraderSignal about Symbol ETH: Buy recommendation (12/12/2025)

1. MARKET CONTEXT Macro sentiment remains stable, with crypto recovering after minor pullbacks. No major bearish catalysts risk assets are still supported as liquidity conditions remain favorable. 2. TECHNICAL ANALYSIS Price is riding a clean ascending trendline. A support zone sits directly below current price, providing a strong demand base. Market structure remains higher highs – higher lows, confirming bullish control. Expectation: a small pullback into trendline + support → continuation move upward. 3. TRADE IDEA Bias: Long on retracement into support/trendline Target: Resistance zone at 3440–3450 Invalidation: Break below the support zone ETH is primed for a trend-continuation move as long as price respects the ascending structure.ETH/USD Update — Trend Reversal with Bullish Structure Forming Ethereum has shown resilience above the key support at 3,050, bouncing strongly and setting up for another bullish leg higher. This price action aligns well with the updated trend reversal you’ve identified. 🔹 Market State: Price Stabilizing and Preparing for a Rally ETH/USD bounced from the 3,050 support level, confirming strong buying pressure in this zone. The pullback from yesterday's decline appears to have found support, and the market is now gearing up for a potential move toward 3,100 and 3,150, aiming to test the 3,200 resistance. 🔹 Macro Drivers Behind Yesterday’s Decline and Today’s Recovery: 1. Global Risk Sentiment and Profit-Taking: Yesterday’s price drop likely stemmed from a broader risk-off sentiment in the markets. As investors locked in profits amid global volatility and strong USD movement, ETH saw a natural pullback. However, this is typical after a bullish impulse, and the 3,050 support is now proving its strength, signaling a potential reversal. 2. Fed Policy Shifts and Dovish Expectations: With Fed rate cuts anticipated in the future, market liquidity is expected to increase, which would benefit risk assets like Ethereum. As traders price in a more dovish stance, Ethereum can continue its upside recovery from this level. 3. Ethereum’s Continued Network Strength: The ETH network continues to gain strength with ongoing upgrades and adoption, particularly in DeFi and staking. As Ethereum stabilizes above key support levels, these factors support further upward movement. 4. ETH’s Role as a Risk-On Asset: Despite yesterday’s pullback, Ethereum remains a key part of the growing risk-on environment as the global market stabilizes and liquidity increases. Positive sentiment towards Ethereum’s development and utility in blockchain ecosystems supports its longer-term bullish outlook. 🔹 Price Expectations and Key Levels: Support Zone: 3,050 Target 1: 3,100 Target 2: 3,150 Resistance Zone: 3,200 As long as ETH holds above 3,050, the bullish continuation setup remains valid, and the next leg higher is likely towards 3,100 and 3,150. The ultimate target remains 3,200, which will test the strength of the current bullish move. Conclusion: Despite yesterday’s brief dip, ETH/USD is poised for continued upside as it bounces off support. The combination of market liquidity, Fed dovish expectations, and ETH’s network fundamentals suggest that Ethereum is ready for its next bullish push toward 3,100, 3,150, and potentially 3,200. Stay vigilant for any macro updates, especially regarding global risk sentiment and Fed policy shifts, which will further dictate Ethereum’s movements in the coming sessions.