Ethereum (ETH) has recently reclaimed a crucial level, signaling a potential breakout towards the $2,100 resistance. However, analysts are cautious, warning that a failure to maintain momentum could lead to a 15% drop in price.
After consolidating around the $1,750 support level, Ethereum managed to break above the key $1,800 resistance. This move has seen the cryptocurrency recover nearly 20% in the last two weeks, reaching a one-month high of $1,873 in early May. With a 1.92% increase from its monthly opening, Ethereum is on track to end a five-month losing streak if it continues to trade above $1,807.
Technical analysis by Michaël van de Poppe suggests that ETH is poised for a significant breakout towards the $2,100 barrier in the next 1-2 weeks. Reclaiming this level is crucial for Ethereum, as it previously acted as a key resistance before the Q4 2023 breakout and as a support level during the 2024 and early 2025 rally.
Another analyst, World of Charts, has highlighted Ethereum’s sideways movement between the $1,750-$1,870 range and suggested that the cryptocurrency is building up for a breakout from its consolidation zone. A successful breakout and confirmation of support at this level could propel ETH towards the $2,500 mark, last seen in February.
Despite the bullish outlook, some analysts have raised concerns about a potential correction. Daan Crypto Trades pointed out that if Ethereum fails to hold above the $1,750 support level, a 15% drop could be on the horizon. The trader warned that a move below this level could see ETH retesting the $1,500 area.
Crypto Amsterdam also shared a similar view, suggesting that Ethereum might dive towards $1,500 if it fails to sustain its current levels. The chart analysis indicates a possible retracement towards the mid-April levels of $1,550-$1,650 before a potential bounce back towards the $1,900 range.
As of the latest update, Ethereum is trading at $1,811, showing a 1% decline in the daily timeframe. Traders and investors are advised to closely monitor the price action and key support levels to gauge the cryptocurrency’s next move.
In conclusion, Ethereum’s recent price action suggests a potential breakout towards $2,100, but caution is advised as a failure to maintain momentum could lead to a significant correction. Traders should remain vigilant and keep a close eye on key support and resistance levels to navigate the volatile cryptocurrency market.