Ethereum Surges 10% in Week, Battles $2.5K Support

Ethereum has recently broken above the 200-day moving average, reaching $2.5K after a period of consolidation between the 100-day and 200-day moving averages. This breakout was followed by a pullback, which is currently being closely monitored by market participants. The pullback is crucial as it will determine whether bullish demand can hold ETH above this moving average, potentially igniting another upward leg targeting the $2.8K resistance zone.

ETH is currently range-bound between $2.5K and $2.8K, and a clear breakout from this zone will likely set the stage for the next significant trend direction. Market sentiment leans toward a potential bullish breakout in the coming days, which could solidify ETH’s reversal structure. The recent rally encountered resistance at a key bearish order block between $2625 and $2670, where sellers re-entered the market. This rejection has pushed the price back toward the $2.5K support level, a historically significant zone for ETH. This area now serves as a crucial battleground. If buyers manage to defend it, Ethereum could regain momentum and reattempt a breakout above the overhead supply. However, failure to hold $2.5K could trigger extended consolidation or even a retracement toward lower supports.

On the lower timeframe, Ethereum’s recent rally was halted at a key bearish order block between $2,625 and $2,670, a zone that has consistently attracted selling pressure. The rejection has led to a retracement toward the $2.5K support level — a historically significant zone where buyers have previously stepped in. As anticipated, ETH found temporary support here and attempted a minor rebound. However, the current lack of trading volume and diminished bullish momentum suggests the potential for another rejection at the overhead resistance. Until a breakout above $2,670 or below $2.5K occurs, Ethereum is expected to remain range-bound.

This chart presents the Binance Liquidation Heatmap, highlighting zones where significant liquidation events are likely to occur. These areas often act as liquidity magnets, attracting price action due to the concentration of leveraged positions. Large market participants, commonly referred to as whales, tend to exploit these zones to enter or exit positions efficiently. Currently, a prominent cluster of liquidation levels is situated just above the $2.6K mark, suggesting a strong likelihood that Ethereum’s price could gravitate toward this region. If reached, it may trigger a short-squeeze, fueling further upward momentum and potentially propelling ETH toward new local highs. Conversely, another substantial liquidity pool resides below the $2.5K level, implying the possibility of a downward move to tap into this zone. As a result, Ethereum remains confined within a tight range between these liquidity clusters, awaiting a decisive breakout to determine the next directional move.

The funding rate, a key indicator of market sentiment in Ethereum’s futures market, has been declining amid price consolidation. This suggests reduced bullish conviction and signs of buyer exhaustion, raising the likelihood of continued short-term sideways movement. For Ethereum to break above the critical $2.6K and $2.8K resistance zones, stronger demand must flow into the derivatives market, lifting the funding rate to more positive levels. Until that shift materializes, the consolidation phase is likely to persist.

Last week, ETH experienced a drop below $2.5K, followed by a sudden bounce back in the past two days, sitting just below $2.8K, marking more than a 10% gain in the past seven days. Ethereum's price has been stagnant around $2,500, with market momentum failing to drive a significant upward trend. A prominent crypto analyst has cautioned about the potential for further stagnation or even a retracement if the $2.5K support level is not defended.