Ethereum Surges 45% to 2025 High, Faces Short-Term Volatility

Ethereum's price has experienced a significant surge, rising from $1,800 to a 2025 high near $2,604. This rally was driven by a break above long-standing descending trendlines on both the 1D and 4H charts, as well as a high-volume breakout from a symmetrical triangle formation seen on May 8. However, on May 11, Ethereum's price retraced slightly to the $2,470–$2,480 zone, which aligns with the upper boundary of its prior consolidation range. This zone could now act as a short-term support if bulls remain in control. The Bollinger Bands on the 4H chart show price retreating after riding the upper band for two days, indicating a cooling of Ethereum's price action.

The 30-minute chart reveals divergence in momentum. The Relative Strength Index (RSI) dropped to 39.4 from overbought levels near 80, suggesting a weakening buying force. Meanwhile, the MACD has turned bearish with a negative crossover, reinforcing the potential for a short-term cooldown. On the weekly chart, Ethereum recently reclaimed the key Fibonacci 0.786 level at $2,075 and is attempting to reach the 0.618 retracement near $2,500. This area remains critical in determining the sustainability of the uptrend. If ETH can consolidate above $2,450 and reclaim $2,600, the next target would likely be the $2,800–$2,900 zone.

On the downside, the EMA structure on the 4H chart shows the 20-EMA at $2,304 and the 50-EMA at $2,094, both sharply ascending. These may act as dynamic supports in case of a deeper pullback. A failure to hold $2,450 may bring ETH back to retest $2,300 or even $2,100, which was the initial breakout base. The short-term pullback in Ethereum's price is part of a typical post-breakout structure where price revisits former resistance to test it as support. While this doesn’t signal a reversal yet, the lower timeframes suggest a temporary Ethereum price volatility spike that could lead to choppy movement before resumption of the upward leg.

However, the bigger picture remains bullish. Volume expansion during the breakout, alignment of higher EMAs, and reclaim of previous resistance levels show strong medium-term intent. But traders should be cautious of intraday fakeouts as the market digests recent Ethereum price spikes. The key levels to watch for May 12 include an intraday resistance at $2,600, immediate support at $2,470–$2,450, major support at $2,300, and a weekly target of $2,800–$2,900. The RSI on the 30-minute chart is at 39.45, indicating a bearish divergence signal, while the MACD on the 30-minute chart has turned bearish, suggesting caution.

Ask Aime: "Did Ethereum's price surge to $2,600, and will it hold the $2,450 support?"