Ethereum is now at a pivotal moment following last week’s explosive rally that pushed prices above several key resistance levels. After surging past $2,700, ETH has pulled back and is now consolidating above the $2,400 mark. This zone has become a critical battleground between bulls looking to confirm a breakout and bears eyeing a deeper correction.
To sustain the current bullish momentum, Ethereum must hold above $2,400 and retake the $2,800 level—an area that marks the upper boundary of the current consolidation range. A confirmed breakout above $2,800 could ignite a broader rally and signal the start of a long-awaited altseason.
Adding strength to the bullish case, new data from CryptoQuant reveals that smart money is accumulating ETH quickly. This large-scale accumulation suggests growing confidence among institutional players and long-term investors, even amid heightened volatility.
All eyes are now on how Ethereum reacts at these levels. A successful defense of support and a breakout above resistance could set the stage for a strong continuation. But failure to hold above $2,400 would likely invite more downside pressure and delay further bullish advances.
Smart Money Backs Ethereum As Bulls Defend Key Support
Ethereum is showing renewed bullish strength as market sentiment turns optimistic across the crypto landscape. After surging more than 50% in recent weeks, ETH is holding above the $2,400 level, a key support zone that traders and analysts alike are watching closely. To solidify a bullish phase and confirm the start of a sustainable rally, bulls must push Ethereum decisively above the $2,800 mark. This would trigger fresh momentum and potentially unlock a path back toward the $3,000–$3,200 region.
Despite the positive signs, risks remain. Ethereum is still down approximately 36% from its December 2024 high near $4,100. This gap highlights the work bulls still have to do to fully reverse the broader downtrend. The recent pause below resistance is a natural cooling-off phase, but if ETH fails to hold above support, bearish pressure could return quickly.
Still, institutional confidence appears to be growing. According to data shared by top analyst Ali Martinez, smart money has accumulated over 450,000 ETH in the past month. This surge in whale accumulation suggests a longer-term bullish outlook, as large holders typically buy during moments of market consolidation to position for future upside.
If bulls succeed in defending $2,400 and break through the $2,800 ceiling, Ethereum could become the catalyst for a broader altcoin rally—possibly marking the beginning of a new altseason.
Price Action: Key Levels In Focus
Ethereum (ETH) is currently trading around $2,493 after failing to sustain momentum above the $2,700 mark. On the 4-hour chart, we can observe a clear break in the steep uptrend that started in early May. After an explosive surge from below $2,000, ETH rallied aggressively, but is now entering a corrective phase marked by lower highs and increasing selling pressure.
The price is approaching the $2,480–$2,460 region, which could serve as short-term support. If that zone breaks, the next confluence of interest lies near $2,300. Volume has slightly declined during this retracement, suggesting that sellers are cautious rather than dominant. However, failure to hold above $2,400 could shift sentiment and invite deeper pullbacks.
The 200-period EMA and SMA on the 4-hour chart sit well below the current price, at $2,084 and $1,936 respectively, indicating that ETH is still in bullish territory from a trend perspective. These moving averages could serve as dynamic support if the correction intensifies.
Overall, Ethereum remains in a strong uptrend, but the current pullback suggests a consolidation phase is underway. Bulls need to defend key levels and break above $2,700 again to regain upside momentum and aim for the $2,800–$3,000 range.
Featured image from Dall-E, chart from TradingView
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