Ethereum ETH Price Analysis: Surges Past $2,650 as Bulls Target $3,000 Resistance

TLDR

• Ethereum recently recovered from a $2,120 low, showing upward momentum above $2,650
• Price is currently facing resistance near $2,840 and the 100-hourly Simple Moving Average
• ETH experienced a massive 30% drop followed by quick recovery after U.S. trade negotiations news
• A crucial support level on the ETH/BTC chart at 0.028 could trigger a potential parabolic move
• Technical indicators show ETH holding above important moving averages at $2,482 and $2,288

Ethereum (ETH) has staged a recovery after testing lower support levels, with the second-largest cryptocurrency by market capitalization pushing above the $2,650 mark in recent trading sessions.

The digital asset has shown resilience following a period of intense market volatility that saw prices drop to $2,120.

The recovery phase began after Ethereum found strong buying interest near the $2,120 support zone. Market data indicates that buyers stepped in aggressively at these levels, helping push the price through several key resistance areas.

The upward movement gained momentum as ETH successfully cleared both the $2,550 and $2,650 resistance levels.

Technical analysis reveals that Ethereum’s price action included a break above a short-term declining channel, with the resistance point previously established at $2,780. This technical breakthrough has been viewed as a positive development by market participants, suggesting potential for further upside movement.

The cryptocurrency’s recent price action comes in the context of broader market dynamics, including a dramatic trading session that saw ETH plunge more than 30% within a 24-hour period. This swift decline was attributed to escalating U.S. trade war concerns, though markets quickly stabilized following announcements about negotiations with Canada and Mexico.

Current market structures show Ethereum trading below the $2,850 price point and the 100-hourly Simple Moving Average, indicating that while recovery is underway, certain technical hurdles remain. The $2,840 level has emerged as a particular point of interest, serving as immediate resistance alongside the moving average.

Looking at the broader technical picture, Ethereum’s price movement has retraced approximately 50% of the downward wave that occurred from the $3,400 swing high to the recent $2,120 swing low. This retracement level is being closely monitored by traders as a potential indicator of the recovery’s strength.

The market currently faces a key resistance cluster near the $2,920 mark, which coincides with the 61.8% Fibonacci retracement level of the recent downward movement. A successful break above this zone could open the path toward the psychologically important $3,000 level.

On the ETH/BTC chart, analysts have identified a critical horizontal support level around 0.028. This technical juncture is being watched closely by market participants as a potential springboard for stronger price action, should buying pressure increase.

The cryptocurrency has maintained its position above two crucial moving averages – the 200-day moving average at $2,482 and the 200-day exponential moving average at $2,288. These levels have historically served as important support zones since July 2020, suggesting the long-term upward trend remains intact despite recent volatility.

Trading volumes indicate healthy market participation during the recovery phase, though some traders remain cautious given the recent market turbulence. The hourly MACD indicator has shown increasing momentum in the bullish zone, while the RSI has moved above the 50 mark, suggesting growing buying pressure.

Support levels have been established at $2,700 and $2,640, with these areas likely to be tested if the current recovery faces resistance. Additional support can be found at $2,550, which could serve as a buffer zone should selling pressure increase.

Recent market data shows that the crypto space experienced one of its largest liquidation events, with over $8 billion being wiped from the market between Sunday night and Monday. Ethereum was particularly affected during this period, leading to increased scrutiny of its price action relative to other digital assets.

For traders focused on immediate price action, the $2,800 mark has emerged as a crucial level that bulls need to reclaim and hold as support. This price point represents both a psychological and technical barrier that could signal renewed market strength if successfully breached.