ETH has broken the $2,500 resistance with bullish signals across RSI, MACD, and SuperTrend.
Short-term resistance is at $2,800; long-term target is at $4,000.
Volume spike and high RSI suggest potential for a pullback before the next leg up.
Ethereum (ETH) has confidently exceeded the important $2,500 resistance, resulting in a confirmed bullish breakout and providing much-awaited price action alongside technical indicators signaling a bullish trend. Analysts and traders focusing on Ethereum are currently eyeing potential price targets between the $3,000 to $4,000 levels.
The breakout confirmed renewed strength in Ethereum along with the overall signal of bullishness in the rest of the crypto market as Bitcoin recently broke its all-time high above $111,000.
Ethereum’s current move can be best understood by examining its daily chart, which reveals a clear break above the $2,500 level. From March through early May, Ethereum traded within a descending channel. After forming a solid bottom around $2,200, ETH broke the downtrend and triggered a “Buy” signal from the SuperTrend indicator.
Ethereum’s current move can be best understood by examining its daily chart, which reveals a clear break above the $2,500 level. Ethereum was in a descending channel from March to early May, according to the chart published by IncomeSharks on X. The digital asset built a strong bottom near $2,200, broke the downtrend, and flipped the SuperTrend indicator to a “Buy” signal.
Current Price: $2,658.96
Support Level: $2,400 held firmly during the last retest
Immediate Resistance: $2,800 and $3,000
Long-Term Target (T2): $4,000
The SuperTrend has flipped bullish, and the chart shows multiple successful buy signals over the past few months. A key technical highlight is the retest of previous resistance, which turned support around $2,400. This held up well and re-confirmed the strength of the breakout.
Also Read: Ethereum Flashes Bullish Signs: Will It Break Past Resistance?
Although the breakout is promising, several on-chain signals indicate that the pump may be overheating in the short term. A report from CryptoQuant noted that Ethereum trading volume is significantly up on exchanges. Typically, when the amount of volume on exchanges spikes, this indicates either a continuation rally or a brief correction.
RSI: Currently near 73, signaling an overbought condition.
MACD: Has turned bullish, with the MACD line crossing above the signal line.
All of these signals suggest momentum is on Ethereum's side. However, a short-term consolidation around $2,600 - $2,800 may make for a healthier launching pad for a longer move up.
The overall analyst community seems cautiously optimistic.
Ali Martinez (crypto analyst) has pointed out that ETH has to hold above $2,200 to maintain a bullish structure. If ETH can stay above $2,200, it supports the upward move toward $3,000, and possibly more if buying pressure continues.
Ted Pillows observed a Golden Cross on Ethereum’s 12-hour chart, a pattern that has historically occurred before large bullish movements.
Gianni Pichichero noted that ETH may retrace to $2,350, as he stressed lower lows on the daily chart and a classic bearish divergence.
Despite the mixed opinion regarding short-term price action, the majority consensus is bullish as long as Ethereum retains the critical $2,400 - $2,500 region.
Ethereum’s latest surge isn’t purely technical. Fundamental developments continue to support its valuation:
Pectra Upgrade: The recent network upgrade has improved Ethereum as a massively scalable and energy-efficient network, and places Ethereum well ahead in smart contracts and decentralized finance.
Institutional Interest: There is growing institutional interest in Ethereum. BlackRock recently disclosed a $45 million position in ETH, demonstrating confidence in Ethereum's long-term use case.
DeFi and NFT Revival: Increased activity in DeFi protocols and renewed interest in NFTs further contribute to demand for ETH.
Additionally, the cryptocurrency market overall is rebounding. Bitcoin recently achieved a new all-time high, bringing a fresh wave of capital and optimism into the digital asset ecosystem along with Ethereum and other altcoins.
The total cryptocurrency market has broken through a $3.5 trillion market cap, with Ethereum playing a central role in this narrative. Memecoins such as Shiba Inu and Floki have also rallied, showing that risk-on sentiment has returned. Stablecoins, such as Tether (USDT), are still essential when it comes to liquidity, and Ethereum's role as the backbone for most of these tokens further underscores its utility value proposition.
Ethereum's rise above $2,500 is a technical triumph for the bulls. With strong support at $2,400 and indicators aligned in the bullish direction, the next target levels are now $2,800 and $3,000; however, the overbought signals indicate that a pull-back or consolidation phase might be on the horizon.
Long-term investors and swing traders should monitor volume patterns, RSI cooling, and macroeconomic news. Assuming the right balance of momentum and fundamentals mix, Ethereum could have the opportunity to reach $3,000 again very soon and possibly spark the beginning of a rally towards $4,000 within the coming months.