Ethereum (ETH) recently surged by 7.5%, breaking through a key resistance level for the first time and surpassing $2,550, reflecting optimistic market sentiment. Analysts predict ETH will test higher levels, with crucial support at $2,310 and resistance at $2,735. Technical charts suggest a potential sustained uptrend, prompting analysts to recommend close monitoring.
Market Overview
ETH’s daily rally of 7.5% marks its first breach of a critical resistance level in weeks. After consolidating, some analysts anticipate a retest of the local highs. On Wednesday, Ethereum surged over 7% from its low of $2,380 to $2,585, setting the stage for another key resistance challenge.
Since breaking out in early May, ETH has traded between $2,400 and $2,800 but briefly lost ground after failing to hold support at $2,550 two weeks ago. Following a recovery, ETH struggled to overcome the $2,500 barrier, fluctuating between the local low and this resistance for a week. Today’s market rebound, coinciding with Bitcoin’s rise to $109,600, has renewed investor optimism.
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Key Levels to Monitor
Daan, a digital currency trader, described ETH’s price action as a "pleasant move beyond the local range." However, he cautioned that bulls must maintain the $2,520 zone to confirm no further deviations or liquidity traps in a "larger retracement." Failure to hold this area could push ETH back to the range lows.
Critical levels to watch:
- Support: $2,310
- Resistance: $2,735
Merlijn, a market observer and trader, noted that Ethereum "respects support every time," forming "one of the clearest breakouts we’ve seen." He highlighted a three-month ascending triangle on ETH’s chart, emphasizing that ETH bounced off an upward support line during recent volatility and now targets $2,700 as the next key resistance.
Technical Analysis and Long-Term Outlook
ETH shows higher lows, strong momentum, and a MACD crossover. A clean break above $2,700 could propel ETH toward $3,000 and beyond. Merlijn also pointed to ETH’s two-year cycle repetition, signaling a potential major breakout.
Historical Parallels
In the 2020–2022 cycle, ETH surged from $100 to its all-time high of $4,878. This time, the starting point is $1,500—a launchpad, not a fall. Analyst Kaleo observed structural similarities between ETH’s performance this cycle and the last, noting that despite BTC’s new highs in December 2020, ETH lagged by 60%, leading some to declare it "dead." Yet, ETH later rallied over 800%.
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FAQ Section
Q: What is Ethereum’s immediate resistance level?
A: The next key resistance is at $2,735, with $2,700 acting as a psychological barrier.
Q: Could ETH drop below $2,300?
A: If ETH fails to hold $2,520, a retest of $2,310 support is likely.
Q: How does this cycle compare to 2020–2022?
A: ETH’s current structure mirrors the last cycle, suggesting a potential 800%+ rally after consolidation.
Q: What’s the long-term target for ETH?
A: Breaking $3,000 could open the path to new all-time highs, with $4,878 as a historical reference.
Q: Is now a good time to buy ETH?
A: Traders should monitor the $2,500–$2,700 range for confirmation of a sustained uptrend.
Conclusion
Ethereum’s breakout above $2,550 signals bullish momentum, but sustaining higher levels is crucial. Traders should watch $2,310 (support) and $2,735 (resistance) for directional cues. With cyclical patterns hinting at major gains, ETH’s trajectory remains promising.
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