Volatile Ethereum Within a Defined Range – Key Levels on Higher Timeframes Are Crucial

Ethereum continues to maintain a position above $2,500 after a challenging two-week period characterized by significant resistance and ambiguous price movements. While buyers have managed to uphold critical support levels, ETH faces persistent challenges near the supply wall just beneath $2,800. This sideways trend is reflected across the broader cryptocurrency market, with Bitcoin and total market capitalization also constrained to narrow ranges, restricting upward momentum overall.

Analysts are becoming increasingly hopeful about the potential for an altcoin rally, contingent on Ethereum’s ability to decisively reclaim the $3,000 threshold. A clear breakthrough at this level could indicate a resurgence of strength and likely ignite a broader upswing in altcoins, many of which have not kept pace in recent weeks.

Leading analyst Daan shared a technical overview, observing that Ethereum’s price behavior has been turbulent over the last fortnight. He highlighted that ETH remains within a range-constrained environment, similar to Bitcoin and the overall cryptocurrency market. Without a definitive breakout from this local structure, traders are likely to remain hesitant.

Ethereum Maintains Structure but Sees Dwindling Momentum

Ethereum buyers gained momentum earlier in the month as the price easily surpassed the $2,200 mark, establishing a bullish framework for the first time in several weeks. Momentum spiked rapidly, with ETH reaching $2,550 on Sunday before quickly retracing back to the $2,400 range. This swift fluctuation underscores the current market uncertainty, with investors remaining cautious despite recent strength.

The pullback witnessed on Sunday has intensified analyst concerns regarding potential short-term selling pressure on Ethereum before the next upward movement can be confirmed. While many hold a favorable outlook on ETH’s mid-term path, they recognize that momentum has diminished, and the market is in a phase of reassessment.

Daan described the recent behavior of Ethereum’s price as “quite chaotic” over the past two weeks. He indicated that ETH, like Bitcoin and the overall crypto market capitalization, is currently caught within a restrictive range. As per Daan, he is “not inclined to make significant moves until we convincingly exit this local range.”

The identified trading range is between $2,100 (critical support) and $2,800 (essential resistance). If Ethereum can maintain its position above current levels and surpass $2,800, it may trigger a new wave of bullish momentum. Until then, expectations for consolidation may remain in play.

ETH Consolidates Below Resistance as Bulls Steadfast

Currently trading at $2,539, Ethereum (ETH) has experienced a tumultuous week characterized by strong bullish efforts and increasing resistance. The daily chart illustrates ETH’s struggle to remain above the 200-day EMA ($2,440.71), which has transitioned to a short-term support area. The 200-day SMA is positioned higher at $2,701.31, serving as a critical resistance hurdle Ethereum must clear to establish a prolonged rally.

Following a sharp upward movement in early May that saw ETH climb from below $2,000 to exceed $2,700, the price has entered a consolidation phase. This stall occurs after several unsuccessful attempts to breach and sustain levels above the $2,700 resistance, located just under the 200-day SMA. Trading volume has declined, and the latest price activities indicate a struggle between buyers aiming to uphold the $2,500 support and sellers endeavoring to limit upward advances.

The bullish framework remains intact as long as ETH positions itself above the 200 EMA and within the $2,400–$2,600 range. Nevertheless, a failure to maintain this support could lead Ethereum toward a deeper retracement from $2,200. For bullish traders, reclaiming $2,700 is crucial to unlock further upward movement toward the significant $3,000 mark. Until this occurs, traders may need to brace for fluctuating price movements and tightening volatility.