Ethereum Faces $2,850 Resistance Amid 1.85% 24-Hour Decline

Ethereum (ETH) is currently facing a significant resistance level at $2,850, where buy-side liquidity is accumulating. This resistance level has been a focal point for traders and analysts, as breaking through it could potentially trigger a substantial price surge. Market analyst Michaël van de Poppe noted that the recent attempt to reclaim $2,700 lacked strength and failed to gain traction, indicating weak buying momentum at that zone. He pointed to the $2,850 range as critical resistance, where seller interest remains high.

Van de Poppe explained that liquidity above $2,850 could spark a larger rally once breached. The longer ETH consolidates below this resistance, the more powerful the eventual breakout could become. The area holds clustered buy stops, which may fuel a sharp upward move when triggered. Currently, ETH is trading near $2,593, following a 1.85% decline in the past 24 hours. It has posted a modest 0.59% gain over the last seven days, remaining range-bound.

ETH has held key levels after a strong move in April and May. Van de Poppe highlighted that ETH retested the order block at the 0.023 BTC ratio and maintained its footing. He suggests these stability points to a continued bullish structure as ETH prepares to revisit recent highs. Although momentum has cooled, traders remain watchful. With liquidity gathering above $2,850, any break beyond that point could ignite renewed price strength. Until then, ETH remains in a holding pattern, building pressure just beneath a major resistance line.

Ethereum's smart contract dominance continues to set it apart in the cryptocurrency market. Currently trading around $2,571, Ethereum has been bouncing between $2,479 and $2,586. This price range has been a key area of interest for traders, as a breakout from this range could signal a significant price movement. The cryptocurrency market has been showing strong trader confidence and growing momentum, with Ethereum eyeing a 54% rally toward $5,871. This potential rally is supported by a new high in open interest, which has reached 7.1 million. This indicates that traders are increasingly bullish on Ethereum's prospects, and the market is poised for a significant price surge.

If Ethereum closes above $2,500, it could set off a buying frenzy, driven by both retail and institutional investors. This price level has been identified as a critical resistance point, and a break above it could trigger a wave of buying activity. The move could be explosive, as the gap between the Bollinger Bands has narrowed to nearly $250, which has consistently presaged volatility explosion in the past. Smart money is moving, and all signs point to Ethereum getting ready to explode. The floor is set, and the next leg up could explode any time. This indicates that institutional investors are positioning themselves for a significant price movement in Ethereum, and the market is primed for a potential surge.

The rally in Ethereum has been driven by institutional interest, the successful Pectra network upgrade, and inflows into Ethereum ETFs, which saw $85 million in a single day. This influx of capital has provided a significant boost to Ethereum's price, and the momentum is building fast. The cryptocurrency has started a fresh surge above the $2,000 zone, with ETH now up over 25%. This surge has been driven by a combination of factors, including the successful network upgrade and the growing interest from institutional investors.