Ethereum has demonstrated renewed vigor by surpassing the $2,600 threshold with relative ease, firmly establishing itself above critical support levels as bullish traders seek to regain momentum. This surge follows several weeks of price stagnation, and while the breakout has garnered attention, traders are now closely monitoring for confirmation through a decisive advance past the next resistance area.
Despite broader market volatility, Ethereum has shown resilience. With buyers reasserting control, the spotlight is now on whether Ethereum can breach the upper limit of its current trading range and initiate a sustained upward trajectory. A lack of follow-through could result in the price retreating into a consolidation phase, potentially frustrating bullish sentiments.
Prominent analyst Big Cheds has recently conducted a technical analysis indicating that Ethereum is nearing its weekly range highs, specifically a region characterized by a cluster of upper shadows and the 200-day moving average (DMA). This area has consistently acted as resistance, thwarting previous attempts at rallying.
Ethereum is at a pivotal moment as bulls strive to push the price toward the $2,800 resistance level—a benchmark that must be decisively surpassed to validate a breakout and signal the onset of a robust bullish phase. Following a significant rebound from April's low, where Ethereum traded near $1,400, the asset has surged over 90%, reclaiming essential moving averages and overcoming prior short-term resistance levels. While momentum is building, Ethereum now faces a crucial test.
The $2,800 zone represents the peak of the current range and aligns with several technical barriers. Cheds emphasized that Ethereum is trading within weekly range highs, where a cluster of upper shadows has consistently rejected price increases. This region coincides with the underside of the 200-day moving average (DMA), solidifying its status as a significant resistance zone. Cheds noted that the bearish outlook falters if Ethereum can convert the $2,750 level into support, a move likely to signal a trend reversal and sustained upward movement.
However, broader economic risks persist. U.S. Treasury yields continue to rise, indicating concerns over inflation and tighter financial conditions. Increased yields can exert pressure on risk assets, including cryptocurrencies, by draining liquidity from speculative markets. In spite of these challenges, Ethereum's structure remains robust. As long as bulls maintain their pressure and defend higher lows, the likelihood of reclaiming the $3,000 mark increases. A confirmed breakout above $2,800 could stimulate heightened participation from both technical traders and investors who have remained on the sidelines due to recent volatility.
Currently, Ethereum is trading at $2,688 on the 4-hour chart after a strong breakout from a multi-day ascending triangle pattern. This move was supported by increasing volume and a clear recovery of all major moving averages—the 50 SMA ($2,558), 100 SMA ($2,571), and 200 SMA ($2,535)—which now serve as support beneath the price. Ethereum has entered a crucial resistance zone between $2,690 and $2,735, marked by several previous rejection wicks. This area has functioned as a supply zone since mid-May, hampering all breakout attempts and resulting in rapid pullbacks.
This current test represents Ethereum’s fifth attempt to breach this level in recent weeks, which heightens the potential for a breakout, particularly if bullish momentum and volume persist. Conversely, should Ethereum fail to clear this resistance zone, a pullback toward the 200 SMA or the $2,600 level is probable, especially if trading volume diminishes. While the short-term outlook remains bullish, characterized by higher lows and increasing buying pressure, a confirmed 4-hour close above $2,735 would indicate breakout confirmation and likely propel the price toward the $2,900–$3,000 range. Until that occurs, Ethereum remains confined within its trading range, but bullish sentiment is clearly intensifying.
