ETH's Stage 2 Breakout Faces Crucial Test at $2,500
ETH's daily chart is undergoing a significant test as it attempts to confirm its Stage 2 breakout. According to a TradingView analysis by crypticcrypto11, ETH has completed a stage sequence that began with a persistent markdown and red/lower-low structure in Stage 4, followed by a long basing period in Stage 1 where the price coiled after declining.
The analysis identifies the recent spike high near $2,650 on September 11 as a crucial level, with ETH currently oscillating around $2,480-$2,530. The question now is whether the breakout will continue or if ETH will return to its base.
crypticcrypto11 emphasizes that Stage 2 is not 'already won' and must be confirmed by holding the breakout structure and continuing to put the old base underneath it. This means that daily closes must hold within a rising breakout channel, with pullbacks remaining constructive to keep ETH in Stage 2.
The analysis highlights two key levels: $2,420-$2,500 as the breakout/decision zone and $2,540-$2,660 as near-term supply. A daily close back through the last compression shelf into the heart of the Stage 1 range would invalidate the Stage 2 read.