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Ethereum has returned above the $2,500 threshold following a substantial increase that transformed market sentiment almost instantly. After several months marked by heavy selling pressure starting in late December 2024, ETH struggled to gain momentum for most of the first quarter. Nevertheless, last week’s formidable surge—an 80% rise in under a month—has altered the market’s atmosphere, rekindling optimism and paving the way for what may signal the onset of a wider altcoin recovery.
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Leading analyst Jelle provided a technical review indicating that while Ethereum’s breakout is noteworthy, the asset still has “much to accomplish.” ETH is currently testing a significant supply zone that has historically represented key resistance. It remains to be seen whether buyers can surpass this area or confront a brief setback. However, the scale and velocity of this recovery imply that Ethereum may have reached a capitulation low and is in the process of establishing a more stable upward trend.
Currently, regaining $2,500 is both a vital psychological and technical landmark. As momentum shifts and overall market strength builds, Ethereum’s price movements in the following days could be crucial in determining the path for the entire altcoin sector in Q2.
Ethereum Evaluates Critical Resistance After Dramatic Weekly Surge
Ethereum has rallied over 44% in fewer than seven days, reclaiming key resistance levels with vigor and drastically shifting sentiment from bearish to bullish. After a prolonged period of underperformance, ETH now spearheads a trend that many analysts predict could mark the commencement of a long-anticipated altseason. The broader market displays indications of revitalized momentum, yet Ethereum’s breakout is especially significant as it often denotes a capital shift towards altcoins.
ETH’s rise has lifted it from below $1,800 to just over $2,500, breaking through pivotal resistance levels that have been intact since January. Presently, the price is testing a vital supply region between $2,600 and $2,800—a zone that previously served as a distribution peak and significant rejection point. A successful breakthrough above this level could lead to a rally towards $3,000 and beyond.
Jelle emphasized the magnitude of Ethereum’s resurgence, remarking that this “substantial rebound” occurred after the market had largely written off ETH. Prices are now firmly established above critical support, and reclaiming $2,500 is a significant technical milestone. Nonetheless, as Jelle notes, much work remains before a complete recovery is validated.
While immediate momentum is undeniably optimistic, Ethereum must stabilize and structure above this resistance to cultivate a lasting upward trend. If successful, the narrative for altseason becomes significantly more compelling, particularly following years of declines across the sector. The next few days will be critical as Ethereum navigates the upper limit of this resistance range and sets the tone for altcoins as summer approaches.
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ETH Evaluates $2,600 Resistance As Momentum Accumulates
Ethereum is trading at $2,570 after an explosive rally that lifted the price from below $1,800 to a new local high at $2,625 in just a handful of sessions. The chart illustrates a distinct vertical breakout, driven by increasing volume and the reclamation of major moving averages. ETH has decisively surpassed its 200-day EMA (currently near $2,436) and is now testing the 200-day SMA around $2,701—a zone that denotes a significant supply area.
The steep trajectory of increase indicates robust bullish momentum, yet the price is nearing a significant resistance confluence. Historically, the $2,600–$2,800 zone has functioned as both support and resistance, implying bulls must solidify above $2,500 to maintain the upward trend.
This shift also follows several months of stability and a prolonged phase of underperformance. After a 66% drop from its December peaks, Ethereum’s ongoing surge suggests a possible trend reversal. If bulls sustain this momentum and surpass the 200 SMA, it could initiate a swift advancement to $3,000 and beyond.
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Nevertheless, trading volume should stay high, and fluctuations are anticipated as sellers may enter at these points. A short-term dip wouldn’t negate the trend, but a failure to remain above $2,500 might hinder momentum.
Featured image from Dall-E, chart from TradingView
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