Ethereum Retests $2,400 Support Zone, Eyes $3,000 Rally

Ethereum's price has demonstrated resilience, successfully retesting the $2,400 support zone. This retest has been interpreted as a bullish indicator, suggesting that the cryptocurrency is poised for further gains. Analyst Michael van de Poppe has expressed his view that Ethereum is positioned to retest the $3,000 region, considering the recent dip as a bullish "liquidity grab" before the next upward movement.

Van de Poppe highlighted how Ethereum tested the resistance level between $2,700 and $2,900 multiple times within the past two months. According to him, these tests and retests serve as a ‘stamina build-up’ by Ethereum as the cryptocurrency prepares for the next leg upwards.

Ethereum broke out of a sideways range towards the end of June to reach a seasonal low of $2,113. That decline was short-lived because the price immediately returned above the lower support of a horizontal range from the second week of May. According to Van de Poppe, the pullback allowed the cryptocurrency to take liquidity at a lower price before returning into range in preparation for an upsurge.

Ethereum’s price has respected the $2,400 price region, bouncing off the support multiple times. Van de Poppe considers the $2,400 level the “springboard” that will push ETH into its next rally phase. He believes the momentum building at this level will be strong enough to break the upper limit of the current sideways range and open a clear path toward the $3,000 target.

The recent meeting between a top executive from Robinhood and Vitalik Buterin, the founder of Ethereum, along with a key officer from Arbitrum, has added to the positive sentiment surrounding Ethereum. This meeting, which occurred ahead of a significant announcement teased by Robinhood, has been speculated to be a catalyst for Ethereum's price movement. The anticipation of this announcement has contributed to the increased interest and potential bullish momentum for Ethereum.

Market sentiment has also improved recently, with tensions in the Middle East easing and the Fear and Greed Index climbing back to 50. This indicates that investors are becoming more optimistic, although caution still prevails. Additionally, the Chairman of the Federal Reserve, Jerome Powell, has confirmed plans for two interest rate cuts this year, which is seen as bullish for cryptocurrencies in the mid-term.

ChatGPT, an AI-powered chatbot, has analyzed Ethereum's weekly chart and identified key levels to watch. For the next 2 to 6 weeks, investors should monitor the $2,525 – $2,060 levels. A bullish breakout above this area could result in a move toward $2,800, while a break below $2,400 could lead to a strong downturn with a near-term target of $2,270. In the long term, ChatGPT believes that macro conditions will be critical to propel Ethereum to the $3,000 – $4,000 area, with the growing adoption of Ethereum’s L2 as a potential structural catalyst.

The Ethereum Community Foundation has also launched significant changes that could alter the network's long-term trajectory. These changes, coupled with the successful retest of the $2,400 support zone, have reinforced the bullish outlook for Ethereum. If the bullish momentum continues and institutional demand remains strong, particularly via ETFs, Ethereum may advance toward the $3,000–$3,200 zone by August 2025, according to analysts' forecasts.