The breakout follows a textbook fakeout that shook out weaker hands before launching the asset into what may be the next vertical phase. This bullish setup is supported by technical indicators and confirmed by rising demand in the options market.

Breakout Follows Shakeout

Ethereum’s price recently reclaimed the upper boundary of its multi-week range, breaking above the $2,800 resistance level. Merlijn highlights that the market experienced a “fakeout” below key support, which was immediately followed by a bullish reversal and breakout. A visible RSI downtrend was also breached, signaling renewed strength in momentum.

The chart shows a classic ascending triangle pattern—marked by rising lows and flat resistance—that culminated in a breakout. According to Merlijn, the shakeout phase is now complete, and the breakout sets the stage for a vertical rally, potentially targeting the $3,600–$3,800 range in the near term.

Options Market Signals Bullish Momentum

Supporting this technical breakout is a sharp repricing in ETH’s short-dated options, as reported by Glassnode. In just 48 hours, implied volatility (IV) for 1-week options surged from 65.2% to 79.0%, while 1-month IV climbed from 66.4% to 72.1%. This steepening of the volatility term structure indicates increasing demand for near-term exposure, either as downside protection or leveraged upside bets.

The options data underscores a growing conviction among market participants that Ethereum’s price action is likely to remain volatile—most likely to the upside—as the breakout gains traction.

Market Outlook

With Ethereum now trading above key resistance and options markets reflecting heightened expectations, all signs point to a continuation of the bullish trend. As long as the asset holds above the breakout zone, momentum could accelerate quickly, mirroring previous vertical rallies observed in crypto bull cycles.

If sustained, the confluence of technical breakout, RSI reset, and options volatility shift may be the foundation for Ethereum’s next leg up toward the $3,500–$3,800 range.

The post Ethereum Breaks Out: RSI Reset and Options Surge Signal Vertical Phase appeared first on Coindoo.

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Filed under: Bitcoin - @ June 11, 2025 4:16 pm