Ethereum Surges 2% to $2,638.8, Eyes $2,700 Breakout

Ethereum's price has surged in May 2025, surpassing several resistance levels after a prolonged period of bearish consolidation. Traders are now focusing on the $2,700 mark, with technical indicators suggesting a potential breakout or retracement. Ethereum is currently priced at $2,638.8, reflecting a strong daily gain of over 2%. This rally began earlier this month when ETH decisively moved above the $2,000 psychological resistance, driven by macro optimism, discussions around Ethereum-based ETFs, and expectations of network scalability improvements.

The Heikin Ashi candles on the daily chart show consecutive green bodies with minimal to no lower shadows, indicating sustained bullish pressure and strong buyer conviction. On the daily timeframe, Ethereum has broken above the 50-day simple moving average near $2,091 and the 100-day SMA near $2,200, moving toward the 200-day SMA at $2,700. This confluence zone around $2,700 is critical, as it represents both technical resistance and a psychological round number. A successful close above this level on the daily chart would likely validate a broader trend reversal and open doors to $2,950 and beyond.

On the hourly chart, Ethereum has seen consistent support near $2,530 to $2,550, suggesting a strong base for a short-term move upward. The ETH price is currently trading just under the $2,610 resistance level. Short-term moving averages are stacked in a bullish ribbon configuration, confirming upward momentum. While slight consolidation is occurring, there’s no sign of reversal yet, and momentum appears intact as long as ETH holds above $2,580.

By plotting a Fibonacci retracement from the recent swing low near $1,540 to the swing high at $2,720, several levels stand out. Ethereum has convincingly broken above the 0.382 retracement at approximately $2,291, as well as the 0.5 retracement level near $2,130. The 0.618 retracement level, around $1,970, previously served as a strong support during the initial pullback phases. Now, with ETH above all major Fibonacci levels, it suggests the bulls are in control. If Ethereum maintains its position above the 0.236 Fibonacci level near $2,500, it can use this as a launchpad toward the previous high and test the key $2,950 zone, which aligns with the next Fibonacci extension target.

If Ethereum price breaks above $2,700 and holds that level on a daily closing basis, the next price targets will likely emerge between $2,950 and $3,250. This price zone corresponds to previous highs seen during early 2024 and aligns well with Fibonacci extensions. The structure suggests that the recent rally is part of a broader macro shift in trend, not just a temporary bounce. On the flip side, if ETH fails to break past $2,700 and experiences a rejection, the price could revisit the $2,400 to $2,300 region where previous resistance-turned-support zones now reside. A deeper correction could pull ETH toward $2,100, where the 50-day moving average would act as crucial support. However, that bearish scenario currently looks less likely unless broader market conditions deteriorate.

The volume has been steadily increasing throughout the recent rally, confirming that the upward move has strong backing from market participants. Heikin Ashi candles on the hourly chart are starting to show smaller bodies and longer wicks, indicating a short-term pause or minor consolidation. This is healthy in a strong trend and may represent a reload phase before the next leg up. Momentum indicators such as RSI are likely nearing overbought territory, suggesting some cooling may occur before continuation, but no signs of trend reversal have appeared yet.

The recent breakout past key resistance levels and moving averages strongly suggests Ethereum is transitioning into a new bullish phase. After months of struggling under the 200-day SMA, ETH now looks poised to reclaim it as support. If this shift is confirmed, Ethereum could be on a trajectory toward $3,000 and potentially $3,250 within the next few weeks. This would mark a significant reversal from its March lows near $1,600 and signal the start of a new uptrend.

Short-term traders may consider looking for a breakout above $2,700 with a retest and confirmation before entering. A stop-loss below $2,580 would help manage risk in this volatile zone. For long-term investors, Ethereum’s current level below $2,700 still represents value, especially if you believe in the long-term impact of the Ethereum ecosystem upgrades and broader crypto recovery. Ethereum’s technical outlook is turning decisively bullish. The next few trading sessions will be crucial. If the bulls can conquer the $2,700 barrier, ETH could enter a powerful uptrend with eyes set firmly on the $3,000 milestone and beyond.