Ethereum Surges 50% In A Week, Tests $2,400 Support

Ethereum has recently experienced a significant rally, surging more than 50% since last week. This surge has pushed the cryptocurrency above key resistance levels at $2,000 and $2,200, marking one of its strongest short-term performances in months. The rally has fueled optimism across the broader crypto market, with many analysts calling for an altseason, where alternative cryptocurrencies could see significant gains.

However, after such a sharp move, a period of consolidation or correction is likely. Top analyst Daan believes that the $2,400 level will be a key support zone to watch. He suggests that it makes sense for the price to test this area before further continuation. Daan is currently avoiding long positions until some of the billions in Open Interest are flushed from the system, reducing the risk of a sharper pullback. How Ethereum reacts around $2,400 will likely set the tone for the next phase.

If Ethereum sweeps $2,400 and quickly bounces, Daan expects a local range to form between $2,400 and $2,700. However, if the price loses that level decisively, the next major support lies at $2,100. A slow bleed into that zone could signal weakness, while a quick flush might present a short-lived buying opportunity. Despite short-term risks, even a pullback to $2,100 would still leave Ethereum up roughly 20% from the prior week.

Currently, Ethereum is trading around $2,565, following a sharp retracement from its recent local high near $2,740. The price is now consolidating just below the 200-day simple moving average (SMA) at $2,702.93. This level has acted as resistance over the last few sessions, capping Ethereum’s attempt to continue its upward momentum. Volume has declined slightly, reflecting market indecision after last week’s breakout.

If bulls can defend the 200-day exponential moving average (EMA) near $2,437 and maintain higher lows above $2,500, the structure would remain bullish. However, a failure to hold these levels could lead to a deeper pullback, with $2,400 and $2,200 as potential supports. The recent price action suggests Ethereum is forming a short-term range between $2,400 and $2,700, which could persist until a clear breakout above the 200-day SMA. Holding above $2,500 is crucial to maintaining bullish momentum, especially as the altcoin market eyes further gains.

If Ethereum can push above $2,700 with strong volume, it would confirm renewed strength and open the path toward the $3,000–$3,100 resistance zone. Until then, consolidation and caution dominate the short-term outlook. The next test around $2,400 will be critical in determining Ethereum’s next major trend.