Ethereum’s Comeback Tour: Bulls Charge as ETH Shows Signs of Life

Ethereum shakes off the crypto winter blues—price action hints at a sustained recovery. Traders lean in as momentum builds.

Breaking Down the Rally

ETH’s recent surge isn’t just dead-cat bounce territory. Network upgrades and institutional interest fuel the fire, though skeptics whisper about ’irrational exuberance’ (sound familiar, TradFi?).

What’s Next for ETH?

The $3K level looms as a psychological battleground. A clean break could trigger FOMO; rejection might send traders back to their spreadsheets—or their therapists.

One thing’s certain: in crypto, the only guarantee is volatility. Buckle up.

TLDR

• Ethereum (ETH) found support at $2,463 and started rising again after Bitcoin hit new highs
• ETH broke above $2,500 and is trading above key moving averages with next resistance at $2,600
• On-chain data shows selling pressure may increase near the $2,800 level where many investors break even
• Taker Buy-Sell Ratio has declined sharply indicating aggressive sellers are dominating the derivatives market
• ETH faces key test at $2,800 resistance with potential for move to $3,000 if it breaks higher

Ethereum has found solid footing after testing support levels near $2,463. The world’s second-largest cryptocurrency is showing renewed strength as it builds on recent gains.

The price action follows Bitcoin’s MOVE to new all-time highs. ETH initially tested the $2,720 zone before experiencing a correction that brought it below $2,500.

The cryptocurrency found a low at $2,463 and began climbing again. ETH successfully moved above the $2,500 resistance level and broke through the 23.6% Fibonacci retracement level from its recent high to low move.

Technical indicators show ethereum trading above $2,520 and the 100-hourly Simple Moving Average. The price also broke above a connecting bearish trend line with resistance at $2,540.

Key Resistance Levels Ahead

The next major hurdle sits NEAR the $2,600 level. This corresponds to the 50% Fibonacci retracement level of the downward move from $2,729 to $2,463.

Additional resistance zones appear at $2,630 and $2,650. A clear break above $2,650 could send ETH toward the $2,720 resistance level.

Technical analysis suggests that breaking above $2,720 could open the door for further gains. In such a scenario, Ethereum could target the $2,800 resistance zone or even $2,850.

Despite the positive momentum, on-chain data reveals potential challenges ahead. Glassnode analysis points to a cluster of investor cost basis levels around $2,800.

Many holders who bought at these levels have been underwater for months. As ETH approaches this zone, these investors may look to exit at break-even prices.

Market Dynamics Show Mixed Signals

Futures market sentiment appears to be shifting according to recent data. The Taker Buy-Sell Ratio has dropped sharply over a 14-day moving average period.

This metric tracks whether aggressive market participants lean toward buying or selling. The declining ratio suggests sellers are gaining control in the derivatives market.

Spot market activity also shows selling pressure. Recent data indicates 113,100 ETH was sold compared to 90,000 ETH bought over a 24-hour period.

Large holder activity reveals mixed behavior. The Large Holder Netflow metric turned negative at -12,700 ETH, indicating whale selling activity.

However, ETH maintains its position above key moving averages on the daily chart. The cryptocurrency trades above both 50-day and 100-day moving averages, supporting the longer-term upward trend.

The Relative Strength Index sits at approximately 63.9, remaining in bullish territory without being overbought. Bollinger Bands have begun to tighten following earlier expansion, suggesting volatility may be decreasing.

Two potential scenarios could unfold from current levels. A convincing break above $2,800 resistance could trigger rapid movement toward $3,000 and beyond.

The SEC’s decision on Ethereum ETF staking is due by June 1st. Institutional demand through yield-bearing ETFs could provide strong support for higher prices.