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Ethereum Surges 25% Past $2,380 After Fed Rate Decision

Coin WorldSaturday, May 10, 2025 10:11 pm ET
1min read

Ethereum's price has surged past the critical resistance level of $2,380, sparking optimism among analysts and traders alike. This breakout, which occurred after the Federal Open Market Committee's decision to hold interest rates steady, has set the stage for a potential significant rally. The price of Ethereum has shown strong bullish signals, with on-chain metrics and technical indicators aligning to suggest a move towards the $3,000-$3,500 range, similar to the levels seen at the beginning of 2024.

The recent price action has been marked by a sharp upward movement, with Ethereum clearing several key resistance levels. Notably, the price has rebounded above the $1,860 resistance, a critical zone where a significant number of wallets hold a substantial amount of ETH. This breakout indicates a shift in market sentiment, with traders positioning for a long-term rally. The next major resistance zones are identified at $3,000 and $4,000, with analysts eyeing a potential multi-month rally if the current momentum holds.

Technical analysts have highlighted several bullish indicators supporting Ethereum's rally. A major bullish divergence in the price chart, characterized by a double bottom and rising momentum indicators, suggests a forthcoming major price recovery. This technical arrangement is typically a sign of a new trend commencing with price targets much higher than the current price. Additionally, the derivatives market reflects a strong bullish bias, with a significant number of traders taking long positions compared to short positions. This sentiment is further supported by liquidation data, which shows that traders who were betting against a price recovery have been squeezed out.

The on-chain data also supports this bullish outlook. Ethereum’s open interest has soared, indicating that traders are positioning for a larger move. The rise in open interest, coupled with the technical indicators, suggests that the market is anticipating a significant price move in the coming weeks. As the price continues its recent momentum, it is expected to avoid a pullback towards the $1,860 support zone, which has now flipped from resistance. This ongoing bullish action could serve as a confirmation of the next leg higher to $3,000 and $4,000.

In summary, Ethereum's breakout above the $2,380 resistance level has initiated a new rally, with analysts and traders optimistic about the potential for a significant price move. The combination of technical indicators, on-chain data, and market sentiment suggests that Ethereum is poised for a multi-month rally, with key resistance levels at $3,000 and $4,000. As the market continues to position for further upside, the outlook for Ethereum strengthens, suggesting a potential breakout in the coming months.

Ask Aime: What could be the next big move for Ethereum?

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shackofcards
05/11
ETH breaks $2,380, next stop $4,000?
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cuzimrave
05/11
Ethereum's mooning has me 🤔 holding more ETH. Next stop, $3k? 🚀
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itssobeefy
05/11
@cuzimrave How long you been holding ETH? You think $3k by end of year?
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pd14200
05/11
$ETH breaking $2,380 was like a dam breaking. The pump's real now.
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Puzzleheaded_Key9366
05/11
@pd14200 Where do you see it topping?
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vivifcgb
05/11
FOMO kicking in, but I'm diamond-handed 😎
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what_in_the_wrld
05/11
@vivifcgb How long you been holding ETH? Think it's gonna hit $4k soon?
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Paper_Coin
05/11
Fed's steady hand = ETH moon mission 🚀
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WoodKite
05/11
@Paper_Coin Think ETH can hit $5k?
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Artistic_Studio2784
05/11
Technical indicators align, long-term gains incoming
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Jwavvy9
05/11
Ethereum's breaking out like Michael Scott at a seminar—full of energy, but remember, it's not over till it's over. Bulls are charging, but resistance is just a phase. Keep your wallets tight and your eyes open.
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WellWe11Well
05/11
@Jwavvy9 Hope Ethereum doesn't moon before my morning coffee—too much caffeine might spike the charts.
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Argothaught
05/11
Fed's pause got ETH dancing. Rate hikes are so last season. 🚀
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CrimsonBrit
05/11
On-chain data's screaming "bullish." Are we ready for $ETH moon?
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Plane-Salamander2580
05/11
Stashing ETH, riding this bull wave
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Hungry-Bee-8340
05/11
On-chain data screams bullish vibes, hodl tight
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Noway721
05/11
@Hungry-Bee-8340 What’s your target for ETH?
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End-Deep
05/11
Holy!I successfully capitalized on the ETH stock's bearish movement with Pro tools, generating $126!
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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