Ethereum surged close to $1,980 on July 27, reaching a level unseen for nearly two months. After hitting this peak, ETH retreated slightly and now trades around $1,958. This marks a 30% gain since bottoming out near $1,540 at the end of June, making July one of Ethereum's strongest monthly performances in recent times.

Three-Phase Rally on Ethereum’s Chart

The price action unfolds clearly across three phases on the 3-hour chart. Initially, from June 24 to June 30, ETH traded sideways between $1,540 and $1,600. This range formed a solid base, as sellers failed to push the price below $1,540 in three attempts, signaling strong support.

Next came a breakout starting July 1, when ETH rose above $1,600 and never looked back. It quickly climbed to $1,800 by July 5, paused with a slight pullback, and then resumed its upward trend. On July 14, an impressive volume surge propelled ETH beyond $1,800, which shifted from resistance to a reliable support level thereafter.

The current stage shows a steady climb between $1,800 and $1,935. Ethereum tested the upper range twice and, after a higher low near $1,845 on July 25, broke out again to hit the recent high around $1,980. This consistent pattern of higher highs and lows with a flipped support level highlights a stable uptrend.

Momentum and Next Targets

Ethereum's relative strength index (RSI) stands above 72, technically entering overbought territory. While this often signals a cautionary note, in a solid uptrend like ETH's, high RSI usually confirms momentum rather than exhaustion. The RSI pattern shows no drop below 40 during pullbacks, underscoring bullish strength.

A slight divergence appears as price makes a new high but RSI peaks lower than in early July, suggesting fresh buying interest is needed to sustain further gains.

The immediate challenge is breaking above the $2,000 mark. This round number is significant: it gathers liquidity, stops, and concentrates options interest. A decisive close above $2,000 on the 3-hour chart with strong volume could open doors to higher targets.

Ethereum’s steady climb contrasts with recent volatile market moves, highlighting its relative strength among cryptocurrencies. Traders will watch closely to see if ETH’s momentum can push through key resistance and continue its upward journey.