Ethereum (ETH) is making efforts to retest its recent local highs following last week's market upheaval. Some experts suggest that the cryptocurrency may continue to move sideways in the coming weeks before making its next significant leap.
Last week, Ethereum aimed to reclaim the $2,800 threshold, reaching a three-month peak of $2,879. However, due to market volatility spurred by the Iran-Israel conflict, the cryptocurrency's price dipped to its local lows before staging a recovery over the weekend. Since early May, ETH has been fluctuating between the $2,400 and $2,680 range, marking a notable recovery from its previous low of $1,800.
Despite this recovery, Ethereum has faced rejection from its local resistance four times in the past month. Market analyst Daan Crypto Trades observed that Ethereum's price action is consolidating between these crucial levels, particularly just below the $2,800 mark, which has been significant throughout the current market cycle as both support and resistance since 2024. He emphasized that this area is "the most important level on this entire chart," noting that every major retest has led to either a substantial bounce or a significant drop.
Daan further indicated that each time Ethereum successfully reclaimed this level as support, it experienced further upward movement. He remarked on the tightness of the current trading range, suggesting that a substantial price movement is likely imminent within the next few weeks. If Ethereum can convincingly break above $2,800 and maintain that level, it could set the stage for a climb towards the cycle highs near $4,000. Conversely, if it falls below the current range, the $2,100 area will be a critical level to monitor.
Merlijn The Trader noted that Ethereum is currently consolidating after breaking out of a multi-month declining wedge, indicating a potential for a significant price movement. Historically, such pauses often precede sharp surges, and the Relative Strength Index (RSI) is also revisiting the breakout zone. Merlijn pointed out that ETH appears to be following a similar trajectory to its 2016-2017 period, when a comparable structure led to a substantial increase in value beginning in 2017.
Following last week's market shakeout, Ethereum has been trading within a tight range while reclaiming the 50-day Moving Average (MA). Merlijn compared the current situation to past trends, stating, "Same breakout zone. Same 50 MA reclaim. Sideways chop… then liftoff. But this time? Bigger market. Institutional fuel is backing ETH. No ceiling in sight. We’re not repeating history… We’re amplifying it."
As of the latest updates, Ethereum is trading at $2,640, reflecting a 3.7% increase within the daily timeframe.
