Ethereum Faces Crucial Test at $2,600 Resistance

Ethereum’s recent price movements have brought it back into a heavily contested resistance zone, with the cryptocurrency’s ability to reclaim $2,600 being critical for bulls to maintain control. After establishing a local bottom at $2,111, Ethereum staged a sharp rebound, but this move appears to be more of a short squeeze than a genuine trend reversal. The price has now rallied into a key resistance zone at $2,600, an area packed with technical confluence and historical relevance. For Ethereum to regain upward momentum, it must close above this level with conviction.

The $2,600 resistance zone is a critical former support level that has now flipped into resistance. The technical significance of this zone is amplified by the confluence of several indicators—the point of control, volume-weighted average price, and the 0.618 Fibonacci retracement from the previous swing high all cluster around $2,600. This makes it an area unlikely to be reclaimed without strong volume and bullish intent. Further pressuring the bullish outlook is the break in market structure. The prior daily trend of higher highs and higher lows was invalidated during the recent drop to $2,111, meaning the burden of proof now lies with the bulls. A reclaim of $2,600 would be the first step toward re-establishing bullish momentum. Without it, this current rally is best interpreted as a bearish retest.

If Ethereum fails to reclaim the $2,600 level, a pullback becomes highly probable. The next immediate support sits around $2,227, which may offer a temporary reaction. However, a breakdown below this zone could send the price much lower toward $1,790, a critical demand zone and previous base of support. This level would likely serve as a make-or-break support for a broader correction. Ethereum’s price is at a major inflection point. A confirmed breakout above $2,600 could reignite bullish structure and open the door to higher levels like $2,800. Failure to break through, however, sets the stage for a rejection-driven pullback toward $2,227, with $1,790 on the table if that support fails. Until $2,600 is reclaimed, the short-term trend bias remains tilted to the downside.

Ethereum's price has been volatile, with a recent 12.8% crash leading to a whale scooping up $39 million worth of ETH. This move has been seen as a bullish signal, with technicals hinting at a potential 25% rebound to $2,735. Mega-whales have been accumulating $263.5 million worth of ETH, further adding to the bullish sentiment. Ethereum's price has been rebounding strongly, clearing the $2,350 resistance with an 8% gain. The cryptocurrency has been struggling to break past the resistance near $2,700 since May. On the downside, Ethereum's price has been holding steady at $2,400, with bulls struggling to break above this level. A sharp green candle of 8.27% appeared on June 24, 2025, successfully reclaiming almost 21% of its previous losses in just one move. This resembles a classic “reset and rebound” pattern, where a cooling-off period gives patient investors the opportunity to secure supply at a discount.

Ethereum's price has been approaching a heavy supply zone, with a high concentration of holders buying their supply in the $2,400 to $2,600 range. This makes it one of the most congested and critical areas to watch as ETH approaches resistance. If ETH manages to break this band with strength, it could pave the way for further gains. However, if weak hands start to exit at breakeven, this could be a short-term upper limit. Ethereum's price has been facing a true test of hodler’s faith as it climbs into the important cost basis cluster. Whether holders will keep faith in the continuation of the upward movement could affect how the third quarter plays out. Despite its solid performance throughout the first and second quarters, ETH still hasn’t managed to reclaim the $3,000 level, a psychological threshold that might make some investors sell early, especially with macro risks still looming. The recent influx of $100 million in ETF funds is encouraging, as it shows that new capital is still flowing in. However, unless Ethereum can break the $2,400-$2,600 supply wall with strength, the idea of a clean run towards $3,000 in the third quarter may still be unattainable for now.