Ethereum has just moved past a Fibonacci retracement level that traders have been closely watching for several weeks. The staying power of this level could be pivotal in determining if a rally towards $3,000 is imminent or merely a fleeting impact of Bitcoin’s performance.
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Ethereum (CRYPTO:ETH) is currently trading at $2,725, representing a rise of 5.4% in the last 24 hours, 7.6% over the past week, and 12.6% in the last 30 days, leading to a market capitalization of approximately $332.5 billion.
Ethereum has surpassed the critical threshold of $2,672, a significant level that traders have been monitoring closely throughout the month. This movement follows a week where Ethereum closed at $2,644, just shy of that important mark.
Ethereum Surpassed $2,672 During Trading Hours But Not in Weekly Closing
The key level of $2,672 is derived from Fibonacci retracement analysis, a tool traders utilize to establish support and resistance points. This level has assumed a vital role for Ethereum, revealing its persistent fluctuation around this mark for weeks.
Technical analysts had established a benchmark: a weekly close above $2,672 would hint at a potential rise towards $3,000. However, Ethereum fell short, closing on the week of September 20 at $2,644, just $28 under that threshold.
Since a brief touch above is perceived differently than a true weekly close, today’s jump is considered part of an ongoing process. For traders, a daily close above $2,800—around 2.8% higher than the current price—would confirm that Ethereum is maintaining its upward trend following the recent squeeze. Meanwhile, the impending weekly close on September 27 will reveal whether $2,672 can be definitively reclaimed.
Bitcoin Short Squeeze Sparks Ethereum’s Price Increase
The recent surge began with Bitcoin (CRYPTO:BTC), which skyrocketed from $84,000 to $85,257 on September 21. As reported by CoinGlass, exchanges liquidated positions totaling $313 million in that timeframe, with a staggering 96% of those being short trades. A short liquidation occurs when exchanges repurchase coins in response to unsuccessful bets against the price. This wave of buying pressure contributes to rising prices as forced purchases create additional demand.
Ethereum rose alongside Bitcoin during this market rally, recording a 5.4% increase. Other cryptocurrencies also saw gains, with XRP (CRYPTO:XRP) up by 6.4% and Solana (CRYPTO:SOL) increasing by 6.6%. Therefore, Ethereum’s gains reflect a broader market squeeze rather than isolated purchasing activity.
$3,000 is 10% Away, with Yearly Performance Stabilizing at $2,967
At the current price of $2,725, critical resistance levels for Ethereum are $2,800—just 2.8% away—and the range between $2,950 and $3,000, which emerged as a target following the breakout above $2,672. Ethereum closed 2025 at $2,967, making this range significant for evaluating its yearly performance.
Ethereum is currently down about 8% for 2026, and if it dips below $2,616, support levels at $2,600 and $2,405 could come into effect, pushing it back into its trading ranges from August. However, this quarter has shown marked improvement for Ethereum, which has gained 73% since July 1, with the spot Ethereum ETFs serving as the main regulated channel for acquiring it.
Looking forward, a significant event on Ethereum’s agenda is the Glamsterdam Sepolia test scheduled for October 6, a preparatory step for an upcoming network upgrade following the crucial weekly close.
Will the Break Above $2,672 Lead to a Move Toward $3,000?
To make a push towards $3,000, Ethereum must secure a weekly close above $2,672. Thus far, it has only closed $28 shy of this vital metric. Today’s increase is largely attributed to Bitcoin’s short squeeze, indicating that Ethereum’s surge wasn’t entirely driven by its own buying influences. Nevertheless, the broader trend continues to be optimistic.
In conclusion, Ethereum has experienced an uptick today driven by a substantial Bitcoin short squeeze that has also positively impacted other cryptocurrencies. Moving forward, the focus will be on whether Ethereum can achieve a close above $2,672 in the forthcoming week. If successful, this could pave the way for a move towards the $2,950 to $3,000 zone. Conversely, if it falls below $2,616, it may revert to earlier trading levels.
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