Ethereum (ETH) shows signs of a strong bullish recovery, buoyed by Bitcoin’s recent all-time high and renewed market optimism. The second-largest cryptocurrency has found solid support around $2,440 and is now pushing upward with sights set on the $2,650 resistance zone and beyond.
ETH Price Holds Key Support, Surges Past $2,500
Ethereum’s price rebounded sharply after testing the $2,440 support level, climbing above the critical resistance areas at $2,500 and $2,520. According to the hourly chart data from Kraken, the price is now trading well above $2,540 and the 100-hourly Simple Moving Average, indicating renewed bullish strength.
Adding to the optimism, a bullish trend line has formed with support near $2,500, reinforcing the idea that dips are being aggressively bought up.
Key Resistance Levels in Focus: $2,620, $2,650, and $2,720
Currently, Ethereum is testing resistance around $2,620, a crucial barrier that has capped previous rallies. Should ETH break this level, the next hurdles lie at $2,650 and then $2,720.
A clear breakout above $2,720 could trigger a strong move toward $2,840, and potentially set up a run to $2,920 or even $3,000 in the short term, especially as Bitcoin’s strength spills over into altcoins.
Technical Indicators Point to Uptrend
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MACD (Moving Average Convergence Divergence): Showing bullish momentum on the hourly chart.
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RSI (Relative Strength Index): Currently above 50, suggesting bullish sentiment and room for further upside.
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Key Support Zones: $2,525, followed by $2,500 and $2,440.
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Key Resistance Zones: $2,620, $2,650, $2,720, $2,840.
Risks Remain If $2,620 Resistance Holds
However, if ETH fails to clear the $2,620 resistance, a short-term retracement is possible. Initial downside support is expected near $2,525, followed by the crucial $2,500 trendline support. A decisive move below this level could drag Ethereum back to $2,440, and a steeper decline could test the $2,420 or even $2,350 support levels.
Still, the broader outlook remains bullish as long as Ethereum stays above $2,500, particularly with Bitcoin leading the market higher and investor confidence returning.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
