Ethereum Surges 7% to $2,636 as Bulls Eye $2,720 Resistance

Ethereum's price has recently shown signs of strengthening, with bulls preparing for a potential upside extension. The cryptocurrency has been trading beneath the $2,500 price level, but recent developments suggest a shift in momentum. Ethereum has started a fresh increase above the $2,450 zone, gaining pace for a move above the $2,550 resistance zone and entering a positive zone. The bulls were able to push the price above the $2,620 resistance, forming a high near $2,636 before correcting some gains. Ethereum price is now trading above $2,560 and the 100-hourly Simple Moving Average, with a short-term rising channel forming with support at $2,570 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $2,625 level. The next key resistance is near the $2,640 level. The first major resistance is near the $2,650 level. A clear move above the $2,650 resistance might send the price toward the $2,720 resistance. An upside break above the $2,720 resistance might call for more gains in the coming sessions, with Ether potentially rising toward the $2,750 resistance zone or even $2,800 in the near term. However, if Ethereum fails to clear the $2,620 resistance, it could start a fresh decline. Initial support on the downside is near the $2,570 level, with the first major support sitting near the $2,520 zone. A clear move below the $2,520 support might push the price toward the $2,500 support, with any more losses potentially sending the price toward the $2,420 support level in the near term. The next key support sits at $2,350.

The bullish sentiment is further supported by the overall market structure, which remains favorable for an upward move. Analysts have noted that if the price breaks above certain resistance levels, the next target could be significantly higher. This optimism is not limited to Ethereum; the broader cryptocurrency market is also experiencing a surge in bullish momentum, with institutions continuing to pour funds into the sector. The recent price action of Ethereum has been characterized by a steady climb, with the asset holding its ground despite market volatility. This resilience is a testament to the strength of the underlying technology and the growing ecosystem of decentralized applications built on the Ethereum blockchain. As more developers and users adopt Ethereum, the network's value proposition continues to strengthen, further fueling the bullish sentiment.

The bullish outlook for Ethereum is also supported by the broader economic environment. Financial conditions have eased markedly since April, prompting some analysts to caution that a further stock rally and weaker dollar could spur a bond yield surge. This could potentially benefit Ethereum, as investors seek alternative assets to hedge against inflation and economic uncertainty. In conclusion, Ethereum's price gathering strength and the bulls preparing for an upside extension is a positive development for the cryptocurrency. The growing institutional interest, favorable market structure, and resilient price action all point to a bullish outlook for Ethereum. As the asset continues to gain traction, it is likely to attract more investors and further solidify its position as a leading cryptocurrency.