Ethereum Surges 2% to $2,820 Amid US-China Trade Deal Hopes

Ethereum's price has recently surged above the $2,820 mark, fueling optimism among traders who anticipate a breakout from its current consolidation phase. This bullish sentiment is bolstered by the potential for a trade deal between the US and China, which has temporarily boosted risk assets across the board. Ethereum's recent strength is particularly notable as it approaches the upper boundary of its ascending channel, a critical resistance level that could determine the next significant move in its price action.

Top analyst M-log1 highlighted the importance of Ethereum breaking out of its current ascending channel. Until this breakout occurs, price action is likely to remain contained within the channel, with limited upside potential. The next few days will be crucial as Ethereum tests this resistance level, with all eyes on volume and confirmation signals that could mark the start of a broader trend. A decisive breakout above the ascending channel could signal a strong move toward $3,000 and beyond, while a failure to break through could result in a retest of lower support levels.

Ethereum's ability to reclaim higher price levels, particularly above the $2,800 mark, is critical in confirming the start of a broader altcoin rally. Positive sentiment and rising price action suggest momentum is building, with Ethereum pushing into resistance and forming a constructive setup. However, Ethereum remains trapped in an ascending channel, a pattern that often leads to slow grinding moves until a breakout or breakdown occurs. If Ethereum can decisively flip $2,800 into support and break above the channel structure, it could unleash a wave of capital rotation into altcoins.

Ethereum is currently trading at $2,771 on the daily chart after briefly breaking above the critical $2,800 resistance zone. This level has capped price action multiple times since early May, making this breakout attempt a significant development. However, today’s rejection from a high of $2,834 suggests that ETH is not yet ready to confirm a clean breakout and may be entering a short-term retest phase. The $2,750–$2,800 zone, now acting as immediate resistance, aligns closely with the 200-day simple moving average (SMA) at $2,654.52 — a historically important level that often dictates medium-term trend direction. ETH’s recent surge above all major moving averages, including the 50-day ($2,333.32) and 100-day ($2,085.42) SMAs, reflects growing bullish momentum and a strong trend structure.

If Ethereum holds above the 200-day SMA on a retest and reclaims $2,800 with follow-through, the path toward $3,000 becomes more realistic. On the other hand, failure to hold this area could result in a slide back toward the $2,600–$2,650 support zone. Volume has picked up, indicating interest, but confirmation will come from sustained price above resistance. For now, ETH remains in a promising position — but the next few candles will be key.