Ethereum is showing renewed strength after rebounding from its Bull Market Support Band, a key zone that has historically served as a launchpad for major uptrends. The bounce signals a possible shift in momentum, but the real test now lies ahead. With the price approaching the crucial golden pocket resistance, a breakthrough is likely to confirm a sustained bullish phase.

ETH Bounces Back From Weekly Bull Market Support Band

In his recent update on ETH, Luca, a crypto analyst on X, noted that the asset has once again found solid footing at a familiar support area. According to Luca, the price has successfully bounced off the Weekly Bull Market Support Band. This rebound also aligns perfectly with the high-timeframe support range highlighted in his previous PAT updates, reaffirming the technical strength of this level.

He emphasized that this move was largely anticipated, as the support zone has repeatedly proven to be a reliable area for bullish reactions whenever ETH enters a corrective phase. The recent bounce signals that buyers are still active and willing to defend key levels, which could set the stage for renewed momentum if sustained.

However, Luca urged caution in the short term, pointing out that ETH is now approaching a major resistance zone. This zone corresponds with the golden pocket area between the 0.5 and 0.618 Fibonacci levels, where Ethereum previously encountered selling pressure. A failure to break above this region could result in sideways movement or a minor pullback before any decisive trend shift occurs.

ETH Eyes High-Timeframe Resistance Range For Next Leg Up

The analyst further explained that if Ethereum manages to break above the current resistance range, it would signal a decisive shift in market structure. Such a move would confirm renewed bullish momentum, paving the way for a mid-term uptrend toward the high-timeframe resistance zone marked in red. 

He added that as long as ETH holds above the “golden pocket” zone after a breakout, the most likely outcome remains further upward. Sustaining momentum above this key area would reinforce the bullish narrative, suggesting that Ethereum could continue climbing toward higher resistance levels without facing major corrections.

However, until that breakout occurs, the analyst expects a period of consolidation around the current support band. According to the analyst, this phase would likely serve as a base for a more durable upside reversal in the future. At this time, patience remains essential, as the ongoing structure hints that Ethereum is preparing for a stronger, more sustained rally once the market confirms direction.

The financial world is witnessing an unprecedented shift, as Ethereum solidifies its position as the sole asset capable of becoming a multi-trillion-dollar institutional store of value. ETH is the only one currently demonstrating the scale, utility, and institutional acceptance to command and securely hold multi-trillion-dollar allocations, fundamentally redefining the future of global wealth preservation and growth.

Why Ethereum Is The Foundational Role For Institutional Capital

Ethereum has quietly become the final form of digital trust for institutions to store trillions of dollars. A market expert and entrepreneur, partnering with OKX and MEXC, Ted Pillows, has stated on the social media platform X that ETH decentralization is nearly impossible to replicate, a network that was largely community-funded, not VC-funded, and forged through proof-of-work (PoW).

Furthermore, the reliability of ETH has been 100% uptime over 10 years of flawless operation and 16 successful upgrades. The ETH Layer 1 and Layer 2 architectures are designed to offer regulatory safety, where institutions can deploy compliant solutions. Meanwhile, the KYC-enabled Layer 2s do not compromise on the fundamental decentralization or security of the leading ETH blockchain.

Maintaining A Buffer For Market Opportunities

While Ethereum is a safe place for institutional investors to store trillions of dollars, analyst Luca has noted that the ETH price has shown strength as it bounced off the Weekly Bull Market Support Band, which has previously acted as a strong reversal over several weeks. This level also aligns with the high-timeframe support area marked in green, the same zone that served as a major resistance throughout most of 2024.

Luca believes that due to this confluence, and as long as the price holds above this range, the broader market structure will continue to favor the upside. However, ETH still faces a critical test ahead. Until it breaks above the golden pocket between the 0.5 and 0.618 Fibonacci retracement Point of Interest (POIs), the same zone that triggered the last rejection, the analyst highlighted that the best approach is to stay somewhat cautious. He also added that investors should be ready for further consolidation within the high-timeframe accumulation range. 

As Luca has highlighted, the priority now is risk management. Avoid unnecessary leverage, don’t overexpose on short-term setups, and maintain a diversified portfolio with moderate exposure to defensive sectors. This will help ride out the volatility as ETH moves closer to the top of the cycle. While advocating for a cash buffer, the expert noted that if ETH breaks below the Weekly Bull Market Support Band, it would signal a potential deeper downside and justify hedging part of spot holdings to mitigate short-term risk.