Ethereum Price Consolidates Near $2,800 Resistance Level

Ethereum (ETH) is currently attempting to retest its local range highs following a market shakeout last week. The cryptocurrency's price has been fluctuating between $2,400 and $2,680 since early May, after surging from the $1,800 mark. This range has been crucial, with the $2,800 level serving as a key support and resistance point since 2024. Market watcher Daan Crypto Trades noted that Ethereum’s price action has been consolidating between these two levels, compressing just below the $2,800 area. This level has been significant throughout the cycle, with every major retest leading to either a bounce or a significant drop.

Daan Crypto Trades highlighted that Ethereum’s current price range is becoming quite tight, suggesting a big move is likely in the next few weeks. He forecasted that if Ethereum convincingly breaks above $2,800 and holds there, it could set up for a move to the cycle highs around $4,000. However, if it loses this current range, the $2,100 area would be the next significant level to watch.

Merlijn The Trader pointed out that Ethereum is consolidating within its current range after breaking out of a multi-month falling wedge. Historically, this pause often precedes a surge. The Relative Strength Index (RSI) is also retesting the recent breakout zone, and Ethereum appears to be following its 2016-2017 playbook. During that period, Ethereum had an explosive setup that led to a massive lift-off starting in 2017. After the market shakeout, Ethereum moved sideways within a tight range while reclaiming the 50-day Moving Average (MA). Following this key reclaim, Ethereum’s price experienced a massive surge toward new highs. Merlijn The Trader suggested that with institutional backing, Ethereum could amplify its past performance rather than simply repeating it.

As of the latest update, Ethereum is trading at $2,640, reflecting a 3.7% increase in the daily timeframe. The cryptocurrency's performance in the one-week chart shows a steady recovery, indicating potential for further gains if it can break above the $2,800 resistance level. The market's anticipation of a big move in the coming weeks adds to the excitement and uncertainty surrounding Ethereum's future price action.

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