TLDR
- ETH currently trading at $2,640, up 3.7% in daily timeframe
- Price consolidating between $2,400-$2,680 range since early May
- Crucial $2,800 level acting as key resistance with four rejections in past month
- Analysts predict breakout could lead to either $4,000 or $2,100
- Current pattern shows similarities to 2017 pre-surge consolidation period
Ethereum is showing signs of a potential breakout as its price compresses between key support and resistance levels. Market analysts are watching closely as ETH attempts to retest local range highs after recovering from last week’s market shakeout.
Last week, Ethereum reached a three-month high of $2,879 while attempting to break through the $2,800 barrier. This attempt was cut short by market turbulence related to Iran-Israel tensions, which pushed the price back to test local range lows.
The second-largest cryptocurrency has since recovered and is currently trading at $2,640, representing a 3.7% increase in the daily timeframe.
Since early May, ETH has maintained a trading range between $2,400 and $2,680. This recovery lifted Ethereum from the $1,800 mark to its current price range for the first time in three months.
Market watcher Daan Crypto Trades has highlighted that Ethereum’s price action has been consolidating just below the crucial $2,800 area. This consolidation is creating compression that often precedes a major price movement.
The $2,800 level has proven to be a critical threshold throughout this market cycle. It has functioned as both a support and resistance level since the beginning of 2024.
Historical Pattern Comparison
Market analysts note that the current Ethereum price action shares similarities with patterns seen in 2016-2017. During that period, a comparable consolidation phase preceded a major price surge.
Trader Merlijn points out that Ethereum is now consolidating after breaking out of a multi-month falling wedge. Historically, such pauses have often come before significant price movements.
The Relative Strength Index (RSI) is also retesting the recent breakout zone, adding technical weight to the possibility of an upcoming move.
Eight years ago, Ethereum demonstrated an “explosive setup” that resulted in a massive price increase starting in 2017. The pattern included a market shakeout followed by sideways movement within a tight range while reclaiming the 50-day Moving Average.
Potential Price Targets
According to Daan Crypto Trades, the current price range is “becoming quite a tight range for how long it’s been trading here.” He believes this indicates the likelihood of a major move in the coming weeks.
The analyst suggests that a convincing break above $2,800 with sustained support at that level would create favorable conditions for a move toward the cycle highs around $4,000.
On the other hand, if Ethereum loses its current range, the $2,100 area becomes “the big high timeframe level to watch” as potential support.
The current market structure has some traders drawing parallels to previous cycles but with added confidence. Merlijn states, “Same breakout zone. Same 50 MA reclaim. Sideways chop… then liftoff. But this time? Bigger market. Institutional fuel is backing ETH.”
Ethereum has been rejected from the local range’s resistance four times in the past month. Each major retest of the $2,800 zone has led to either “a nice bounce” or “big dump,” making it a crucial level for traders to monitor.
Every successful reclaim of this level as support has historically led to further price increases for Ethereum. This pattern makes the current consolidation particularly interesting to market observers.
As of the latest data, Ethereum continues to trade at $2,640, maintaining its position as the second-largest cryptocurrency by market capitalization.
