In a recent development, Ethereum ascended above the $2,600 threshold, indicating a revival of momentum. However, the surge was halted due to widespread market unpredictability that limited further advancements. Despite this, Ethereum has demonstrated resilience, maintaining above crucial support levels that have bolstered its latest upward trend. Both investors and analysts are closely monitoring Ethereum’s performance, which could potentially trigger the much-anticipated altseason.
Amid macroeconomic instability and fluctuating investor sentiment, the broader crypto market remains on high alert. Nonetheless, Ethereum’s persistence above $2,500 has sustained bullish sentiment. The $2,650 level, a historical impediment to upward trends, is now under close watch by many.
Leading analyst Daan provided a technical analysis showing that Ethereum is currently testing a key resistance zone around $2,650. If Ethereum successfully converts this zone into a support area, it could pave the way for a dramatic breakout and a widespread altcoin rally. Given the current favorable conditions for Ethereum bulls, particularly if Bitcoin remains steady and global conditions do not deteriorate, the upcoming days could be critical in deciding whether Ethereum can surmount this resistance and spearhead the next market cycle phase.
Trading once again at a crucial juncture, Ethereum could potentially trigger an altseason breakout. After months of underperformance characterized by robust selling pressure and restricted upside, Ethereum has started to exhibit renewed vigor. Bulls have successfully defended key support areas, and the recent stabilization around the $2,500–$2,600 range is now considered a springboard for higher valuations.
In spite of ongoing global tensions, including US-China trade disputes and rising Treasury yields, Ethereum has displayed resilience. The anticipation of capital shifting from Bitcoin to altcoins is growing, and Ethereum is well-positioned to lead this transition.
Daan pointed out that the $2,650 level, as shown on Ethereum’s 4-hour chart, is a critical short-term obstacle. If Ethereum manages to turn $2,650 into support, it could clear the way towards $2,700 and potentially initiate a bullish extension.
For the time being, bulls are dominating, but Ethereum must overcome the overhead supply to kickstart a new upward trajectory. A significant leap above $2,700 could act as a catalyst for both Ethereum and the broader altcoin market, indicating a significant shift in sentiment across the crypto sphere.
Currently, Ethereum is trading at $2,604 on the 4-hour chart after bouncing back from a local low near $2,500. This recovery has placed Ethereum above its 34-period EMA ($2,566) and all major short-term SMAs (50, 100, and 200), implying a return of short-term bullish momentum. However, Ethereum is still encountering substantial supply just below the $2,650 resistance area, a level that has consistently thwarted upward movements in the past month.
As Ethereum nears the upper bound of this range once more, traders should keep an eye out for a breakout above $2,650, which would confirm a bullish continuation. Failure to clear this resistance could result in another decline back to $2,500 or the 200 SMA near $2,380. Ethereum is currently in consolidation mode, but price action slightly favors bulls as long as support holds.
