Ethereum is trading above the $2,500 level, showing notable strength despite recent volatility across the broader crypto market. Since early May, ETH has been trapped in a consolidation range between $2,400 and $2,700, struggling to establish a clear trend as both bulls and bears wait for confirmation. However, recent price action suggests growing momentum, with bulls maintaining control above key support zones.
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Top analyst Carl Runefelt shared a technical analysis pointing to a decisive moment ahead for Ethereum. According to Runefelt, a breakout above the $2,700 resistance level is essential to ignite an impulsive move toward higher levels. Without that breakout, ETH risks remaining range-bound or revisiting lower demand zones.
The current market structure, combined with positive sentiment surrounding altcoins and growing institutional interest in Ethereum, contributes to the optimism. Still, the coming days will be critical. A sustained move above $2,700 could open the door for a rally toward $3,000 and beyond, while failure to break out may delay Ethereum’s next major leg up. As Bitcoin trades just below its all-time highs, Ethereum’s next move could also determine the short-term trajectory for the altcoin market at large.
Ethereum Leads Altcoin Recovery
Altcoins have been stuck in a prolonged bear market since 2022, with many tokens still trading well below their all-time highs. Amid this challenging backdrop, Ethereum has emerged as the leader of a potential recovery. Since its April lows, ETH has more than doubled in price, surging over 100% and reclaiming key support levels above $2,500. This sharp rebound suggests that a new bullish phase for Ethereum—and potentially the broader altcoin market—could be in the early stages.
However, the optimism is tempered by growing macroeconomic risks. Recent U.S. data has raised concerns about systemic fragility, with rising Treasury yields and persistent inflation fueling uncertainty across risk assets. Investors remain cautious as higher yields could limit liquidity flows into crypto, particularly into speculative altcoins.
According to Carl Runefelt, Ethereum’s price structure is approaching a critical point. He highlights that ETH is currently trading within a rising wedge pattern—a bearish formation that often precedes a sharp pullback. Runefelt warns that if Ethereum fails to break decisively above the $2,700 resistance level soon, the price may reject and fall toward lower support, potentially leading to a drastic correction.
For now, Ethereum remains range-bound between $2,400 and $2,700. A confirmed breakout above the upper boundary could fuel continued bullish momentum and trigger a broader altcoin rally. But failure to hold current levels, especially with bearish macro pressure building, could signal that the recent gains were a temporary relief rally. Ethereum’s next move will likely define the near-term direction for the entire altcoin sector.
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ETH Faces Key Resistance Amid Rising Momentum
Ethereum is showing strength as it trades at $2,574.70, gaining over 2.2% in the last session. As shown in the 3-day chart, ETH has remained range-bound since early May, fluctuating between the $2,400 support and the $2,700 resistance. The latest move above the 50-day and 100-day simple moving averages (SMAs), currently at $2,226 and $2,644, respectively, signals growing bullish momentum. However, Ethereum still faces a significant challenge near the 200-day SMA, currently sitting at $2,791, right below the critical $2,800 liquidity level.
The price has tested this resistance zone multiple times without success, suggesting that a strong breakout above $2,700–$2,800 is needed to initiate an impulsive move higher. Volume remains stable, and ETH’s ability to hold recent gains hints at continued accumulation, but a lack of decisive follow-through could signal buyer exhaustion.
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If bulls manage to reclaim $2,800, it would open the door toward $3,000 and confirm a breakout from the multi-month range. On the downside, a failure to hold $2,500 could trigger a drop back toward $2,400 or even $2,200 if broader market conditions deteriorate. For now, ETH remains in a pivotal zone, and its next major move will likely determine broader altcoin momentum.
Featured image from Dall-E, chart from TradingView
