- Ethereum faces resistance at $2,700 but reclaiming $2,750 could trigger bullish momentum.
- A rising wedge and RSI divergence suggest a possible breakdown if support at $2,400 fails.
- Whale activity and a Morning Star pattern point to $3,300 as a potential next target if breakout occurs.
Ethereum is currently trading at $2,509.10 as it remains near a critical resistance level. The cryptocurrency faces persistent selling pressure near the $2,700 mark but shows signs of preparing for a possible breakout. Market participants are watching closely to see if Ethereum can reclaim $2,750, which could trigger renewed buying momentum.
Price Action and Technical Patterns
According to analysis prepared by Crypto Eagles on X, Ethereum’s current price action resembles the crash and recovery pattern seen in 2020. ETH has struggled to surpass the 200-day moving average around $2,700, a level that has acted as a strong resistance.
The 4-hour chart shows Ethereum trading within a rising wedge formation, typically a bearish pattern. This aligns with bearish divergence on the RSI, indicating weakening buyer strength. If Ethereum breaks below the wedge’s lower boundary near $2,400, a decline toward the $2,200 support zone could follow.
However, a breakout above the upper boundary may cause a short squeeze, driving the price higher. The ongoing distribution near the resistance zone suggests caution, as whale activity has increased, signaling possible profit-taking.
Support and Whale Activity
Ethereum is defending the $2,500 support level, which now acts as a key short-term floor. ETH has formed a consolidation range between the 34-day EMA at $2,378 and the 200-day SMA near $2,683. A strong close above $2,750 could attract fresh buyers and push Ethereum toward $3,000 and beyond.
Crypto Bullet noted that Ethereum printed a Morning Star candlestick pattern on the monthly chart, signaling potential bullish momentum. The analyst stated, “$2,500 resistance will be broken,” with a target set at $3,300. Investors are advised to watch price action closely, as reclaiming $2,750 could mark the start of a new upward trend.
