Ethereum RSI Breakout Sparks Momentum as Fusaka Upgrade Boosts Capacity

Ethereum’s RSI has broken a multi-month downtrend, signaling momentum gains while price remains compressed near $2,800, targeting a potential $3,400 breakout.

The coiling pattern between descending resistance and horizontal support builds market tension, creating conditions for a strong directional move when triggered.

Fusaka upgrade raises Ethereum’s block gas limit from 45M to 150M, enhancing network capacity as momentum shifts are observed in price action.

Ethereum is entering a phase where technical momentum and network development are moving in parallel. The market is watching a tightening price structure while the blockchain’s latest upgrade expands block capacity and supports higher throughput.

Momentum Shift Evident in RSI Breakout

Ethereum is currently showing one of its clearest internal strength shifts in recent months. Analyst Merlijn The Trader noted on X that the RSI has already broken above a multi-month downtrend even though the price remains compressed. This early move suggests momentum has turned upward while the candle structure awaits confirmation.

The price continues to coil between a descending resistance zone and the horizontal support around $2,800. This formation has created a pressure pocket in which volatility tends to build before a directional move. Traders are monitoring this pattern closely due to the consistent defense of the support region.

A breakout above the descending trendline would align price action with the RSI’s advance. If that move materializes, the chart shows a relatively clear pathway toward the $3,400 area, which has acted as a liquidity cluster and a key psychological level.

Coiling Structure Forms Ahead of Potential Expansion

The tightening structure has kept Ethereum in a narrow range for several sessions. Market participants observe that compressed price zones often precede stronger movement. The RSI’s behavior suggests market strength is emerging beneath the surface even as candles remain constrained.

Buyers have continuously responded near the support band, preventing deeper retracements and maintaining the coil. This behavior has allowed the pattern to sustain its shape and build tension within the range.

If price follows momentum’s lead, as Merlijn The Trader noted, a break above the upper boundary could release the stored pressure. Such a move would steer Ethereum toward the next resistance cluster without major structural obstacles.

Fusaka Upgrade Expands Block Gas Limit

Alongside the technical setup, Ethereum’s network development advanced with the Fusaka upgrade. Cointelegraph reported that this upgrade raised the block gas limit from 45 million to 150 million, allowing more transactions to be processed per block.

The adjustment increases the network’s execution capacity at a time when scaling demands continue to rise. With a higher limit, validators can include more activity in each block, easing congestion during busier periods.

This development arrives as traders observe the tightening market structure. The combination of a technical momentum shift and network expansion has drawn broader attention. Market watchers now look to see whether Ethereum’s price will respond to the internal strength already signaled by the RSI.

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