Ethereum Bulls Dig In – Technicals Flash Green for Near-Term Bounce

Ethereum’s support floor holds firm as traders spot bullish divergence on the charts. Could this be the spark for a quick relief rally?

Bulls vs. Bears: The $2,800 level becomes the new battleground. On-chain data shows whales accumulating, while shorts get squeezed—classic setup for a volatile pop.

Meanwhile, Bitcoin maximalists quietly recalculate their ’ETH is doomed’ narratives. (Spoiler: They’ll be wrong again.)

Ethereum Builds Strength Amid Uncertainty

Ethereum is holding up well despite widespread market volatility, trading confidently above the $2,400 level. The asset continues to show strength as it consolidates within a key demand zone, positioning itself for a potential MOVE higher. This resilience is drawing the attention of analysts, many of whom believe ETH is preparing for an impulsive breakout that could ignite a broader altseason.

While the technical outlook remains constructive, global tensions continue to shape investor sentiment. The ongoing trade friction between the US and China, combined with rising US Treasury yields, is injecting uncertainty into the macroeconomic landscape. These systemic risks have the potential to disrupt financial markets, but so far, cryptocurrencies—especially Bitcoin and Ethereum—have remained relatively firm.

Martinez shared a technical setup that could validate the bullish thesis. According to Martinez, Ethereum is flashing a TD Sequential buy signal on the 4-hour chart, signaling a likely rebound if ETH continues to hold above $2,550. This would position the asset for a move toward $2,650—a level that could confirm bullish momentum and bring altcoins back into focus.

If Ethereum can maintain its current support and break through immediate resistance, it could serve as a spark for renewed Optimism across the crypto sector.

Bulls Face Key Support After Breakdown Below $2,550

Ethereum is under pressure as it drops below the $2,550 support level, now trading around $2,493. On the 4-hour chart, ETH has clearly lost momentum, slipping below the 34 EMA ($2,608) and also breaking beneath the 50 and 100 SMAs—levels that previously acted as support during consolidation. The recent rejection from the $2,800 range triggered a sharp correction, with increasing volume suggesting strong selling activity.

The next key area to watch is around $2,450, which aligns with previous consolidation zones and could serve as short-term support. If this level fails to hold, ETH could retest the 200 SMA near $2,300, a crucial level that also lines up with early May breakout levels.

Despite the pullback, Ethereum remains within a broader uptrend. A reclaim of the $2,550–$2,600 zone could restore bullish momentum and set the stage for another attempt at the $2,700–$2,800 resistance range. The TD Sequential buy signal, previously active above $2,550, has now been invalidated, signaling caution for traders. All eyes are now on the bulls to see if they can defend this region and reset the short-term structure for a rebound.

Featured image from Dall-E, chart from TradingView