As Bitcoin stabilizes above the $93,000 mark, Ethereum is aiming for a bullish extension. With an intraday recovery of 0.79%, the Ethereum token showcases a lower price rejection from a 24-hour low at $1,740.
Currently, the biggest altcoin is trading at $1,784 and approaches a key resistance area. Will a short-term recovery result in a new breakout rally for Ethereum to reach the $2,500 level? Let’s find out.
In the daily chart, the Ethereum price trend showcases a bullish comeback within a descending channel pattern. Within the channel, the ETH price is currently facing a key supply area near the $1,800 level.
Slightly above this supply zone stands a dynamic resistance line of the 50-day EMA line acting as the dynamic resistance. Furthermore, the high supply area coincides with the upper boundary of the falling channel pattern.
This makes it a crucial crossroad for Ethereum as the short-term recovery aims for a critical breakout rally. Supporting the upside chances, the MACD and signal lines have bounced back within the negative territory to nearly cross the halfway line.
Furthermore, the sudden rise of positive histograms highlights the increased bullish momentum. Based on the price action analysis, the breakout rally will likely challenge the 100-day EMA line near $2,200, followed by the 200-day EMA line near $2,500.
On the flip side, the crucial support for the ETH price remains the $1,542 horizontal level.
Devs Suggest 4x Increase in Ethereum Gas Limit
Amid the recent surge in ETH prices, the Ethereum Improvement Protocol EIP-9678 by Sophia Gold, the developer, suggests increasing the gas limit. As per the EIP Improvement Proposal, the gas limit is suggested to be increased to 150 million from the current nearly 36 million.
This will be a key feature of the Fusaka hard fork expected in late 2025. Currently, the Fusaka hard fork is under development and is scheduled after the Pectra mainnet upgrade in May 2025.
The decision on the gas limit proposal will be finalized in the upcoming All-Core Devs Execution Meeting, ACDE. Supporting the increased gas limit proposal, Tim Beiko confirmed that the draft will align with client defaults and prioritize the gas limit increase.
