Ethereum is currently facing a crucial moment as it approaches the $2,700 level, which is considered a key resistance that must be overcome to confirm a bullish setup. This is happening in the context of Bitcoin breaking above its all-time high, signaling a new phase in the crypto market that could potentially lead to significant gains across altcoins. For Ethereum, this moment could determine the next phase of its recovery rally.
Since the beginning of May, ETH has experienced a surge of over 55%, driven by renewed investor confidence, overall market strength, and a shift of capital from Bitcoin to large-cap altcoins. The sentiment surrounding Ethereum is changing, and its ability to lead the market could have a significant impact on the pace of the upcoming altseason.
Data from Glassnode emphasizes the improving fundamentals behind Ethereum’s recent price movements. In May, Ethereum reclaimed its Realized Price at $1,900, indicating that the average holder is now back in profit after a period of losses. The price has also surpassed the True Market Mean at $2,400, a historically reliable bullish signal. However, breaking above $2,700 is crucial to validate this trend and attract further capital driven by momentum. The confirmation of this breakout will play a significant role in determining the speed at which the altcoin market gains momentum following Bitcoin’s recent surge.
Ethereum is leading the altcoin market as investors position themselves for what could be a significant rally in the near future. ETH has regained key technical and on-chain levels, displaying a bullish structure with higher lows and consolidation around the $2,700 resistance zone. With bulls maintaining control, Ethereum is considered the benchmark for altcoin sentiment in a market where Bitcoin’s breakout has set the tone for capital rotation into high-cap altcoins. To fully confirm a bullish continuation, Ethereum needs to break and hold the $2,700 – $2,900 range.
On-chain data from Glassnode further supports the bullish outlook for Ethereum. Reclaiming the Active Realized Price near $2,900 would not only confirm a major structural breakout but also indicate strong confidence among recent buyers. While ETH is currently in a strong position, the next few trading sessions will be crucial in determining whether it is ready to drive the altcoin market higher.
In terms of price action, Ethereum is currently testing major resistance around the $2,665 level, with the possibility of breaking above $2,734. The daily chart shows a clear uptrend since early May, with higher lows and strong buying volume supporting the upward movement. Key moving averages are sloping upward, with the 34 EMA at $2,249 and the 50 SMA at $1,965, reinforcing the bullish structure.
The immediate technical challenge for Ethereum lies at the 200-day SMA, marked at $2,703, which has historically acted as dynamic resistance. A daily close above this level could trigger a breakout and confirm a broader bullish continuation towards the $2,900 – $3,000 region. While volume has slightly increased on recent green candles, the test of the $2,700 zone could lead to short-term profit-taking. Support levels are seen at $2,445 (100 SMA) and $2,080 (near the True Market Mean), providing a potential cushion in case of a pullback.
In conclusion, Ethereum’s current position in the market indicates a strong bullish setup, but breaking above key resistance levels will be essential to confirm a sustained upward trend. With Bitcoin’s recent breakout setting the stage for altcoin gains, Ethereum’s performance in the coming sessions will be crucial in determining the direction of the overall market.