Ethereum is currently in the spotlight as optimism returns to the cryptocurrency market. With Bitcoin breaking into price discovery and reaching new all-time highs, attention has shifted towards ETH, which is now facing crucial resistance levels. Since early May, Ethereum has seen a significant increase of over 55%, benefiting from the overall market strength and renewed investor confidence. Despite this impressive recovery, Ethereum is still trailing behind Bitcoin and has yet to reclaim its highs from 2021.
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Top analyst Daan has pointed out that Ethereum has been trading in a range between $2,400 and $2,600 following its recent surge. This sideways movement indicates indecision in the market, with buyers active but unable to trigger a breakout. While Bitcoin is displaying strong leadership with its new highs, Ethereum’s performance during this period has been more subdued.
However, the outlook for bulls remains positive. The $2,400 level has proven to be a strong support, while the next target for Ethereum is to break through the $2,800 resistance level for further gains. If Ethereum can break out of this range and follow Bitcoin’s lead, it could be poised for a significant surge. All eyes are now on Ethereum to see how it will move next.
Ethereum Prepares For A Breakout As Altcoins Enter The Spotlight
As Bitcoin reaches new all-time highs above $111K, the broader crypto market is entering a phase of momentum that could drive substantial gains across altcoins. Ethereum, in particular, is in a critical position. While it has not yet followed Bitcoin’s breakout, it is holding steady above support levels and showing signs of strength. To confirm a bullish trend, Ethereum must break decisively above resistance levels and lead the altcoin rally.
Daan’s technical analysis highlights that Ethereum has been consolidating between $2,400 and $2,600, lagging behind Bitcoin’s recent surge. This underperformance has led to a cooling ETH/BTC ratio, sparking discussions among traders about the next altcoin season and waiting for Ethereum to catch up.
Daan emphasizes that while bulls have defended the $2,500 zone, Ethereum has not yet produced a convincing breakout. The key resistance level to watch is $2,850, as clearing it would indicate a shift towards higher highs. Conversely, a drop below $2,100 could trigger a broader pullback. Currently, Ethereum remains range-bound but poised for potential growth, with market sentiment turning more positive.
ETH Tests Critical Price Levels
On the 4-hour chart, Ethereum is showing signs of renewed strength, trading around $2,668. After consolidating in the $2,400–$2,600 range for weeks, ETH is approaching the upper boundary of this zone, signaling a possible breakout. The recent bounce from support at $2,450 has been robust, with increasing bullish momentum indicated by consecutive green candles and rising volume.
The 200-period SMA and EMA, currently at $2,077 and $2,199 respectively, confirm a bullish market structure, with Ethereum holding above both moving averages since early May. The current price action suggests a potential breakout in the making.
To confirm a breakout, Ethereum must convincingly break above $2,700 and continue towards higher resistance levels at $2,850 and beyond. While this level has been tested multiple times, sellers have held firm. A breakout could lead to a swift move towards $3,000, while a failure to maintain current levels could see Ethereum retracing towards previous support levels.
In conclusion, Ethereum’s performance in the coming days will be crucial in determining its next move in the crypto market. As Bitcoin leads the way, all eyes are on Ethereum to see if it can break out of its current range and follow the path to new highs.