Ethereum Dips 1.9% But Holds Above $2,500 Support

Ethereum (ETH) has been trading above the $2,500 mark, maintaining a crucial support level at $2,532.13 despite a 1.9% daily decline. The price has formed an ascending wedge pattern following a breakout from a long-term downtrend, with the next resistance level set at $2,630.57. This pattern suggests a potential 63% rally toward $4,200 if the price breaks above the resistance level of $2,630.

Currently, Ethereum is trading at $2,552.93, showing a 1.9% dip in the past 24 hours. However, it remains above the essential support rate of $2,532.13. The upper edge of an emerging ascending channel pattern is the vital support/resistance zone of $2,630.57, which traders are closely monitoring before making their next moves. According to analyst Clifton Ideas, a breakout from this structure could pave the way for a significant price advance, potentially targeting the $4,200 level, based on the latest technical chart setup.

Ethereum's recent price action has formed a bullish structure after exiting a downtrend. The asset was previously trading within a descending channel, which persisted through early 2024 with consistent lower highs and lower lows. However, in May, Ethereum broke out of this channel with strong bullish momentum, rising from below $1,900 to above $2,500 within a few days. Following the breakout, the price action entered a consolidation phase between two converging trend lines, forming an ascending wedge pattern. The support and resistance levels of this wedge are gradually narrowing, and market participants are closely watching the higher resistance trendline for a potential breakout signal.

Despite recent retreats, Ethereum is currently positioned above the nearby support zone of $2,532.13. The intraday trading range indicates that Ethereum is trading between this support and the resistance level of $2,630.57. This range serves as a decision zone for short-term momentum. If the price breaks and sustains above the $2,630 level, it may validate the bullish wedge formation, confirming the continuation of the previous breakout trend from the descending channel. In such a case, the projected upside points toward the $4,200 price area, reflecting an approximate 63% increase from current levels.

The breakout projection on the daily chart outlines a green zone highlighting the target range between $3,000 and $4,200. This area aligns with the measured move based on the height of the previous rally. The chart also shows a possible pullback to retest the breakout zone before continuation. This technical setup remains valid as long as the price stays within the wedge pattern and above its lower support boundary. Failure to hold this structure may invalidate the current bullish outlook and shift focus back to support levels. Until then, price movement near the resistance trendline will likely guide market sentiment.