Key Takeaways
- After rallying 50% in early May, ETH has stalled in a narrow range between $2,400 and $2,700.
- IOMAP data shows support between $2,349 and $2,426, which may cushion further downsides.
- Technically, ETH’s price has formed a similar structure that preceded its 2024 rally past $4,000
After posting an impressive 50% rally in early May, Ethereum’s (ETH) price has slipped into a period of stagnation. Since mid-May, price action has been confined to a narrow range between $2,400 and $2,700.
As a result, the highly anticipated push toward $3,000 has yet to materialize.
Still, this consolidation phase may be a healthy pause rather than a sign of weakness. Several indicators suggest that ETH is building momentum for its next significant move. Here are the reasons and potential prices ETH might reach.
Ethereum Tightens Above Support
Ethereum’s price has stabilized around the $2,500 mark at press time, with bulls trying to defend this key support level. The In/Out of the Money Around Price (IOMAP) indicator reveals that Ethereum has established strong on-chain support.
For context, the IOMAP can spot either support or resistance. When the volume of coins in unrealized profits is higher, it represents support.
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However, a larger volume of unrealized losses indicates resistance. Based on IntoTheBlock’s data, Ethereum’s strongest support lies between $2,349 and $2,426.
Approximately 2.56 million addresses hold 64.88 million ETH in unrealized gains at this range.
This support zone outweighs the volume of coins currently at a loss between $2,502 and $2,875, suggesting that bulls may have a stronger grip on the market at current levels. If this zone holds, it could help drive Ethereum’s price higher.
What Analysts Are Saying
Adding to the bullish sentiment, Tracy Chen, Chief Operating Officer (COO) at crypto exchange MEXC, believes Ethereum’s price has room to move higher.
Speaking to CCN, Chen pointed to Ethereum’s strong fundamentals, emphasizing that the recently implemented Pectra upgrade could provide the much-needed boost.
“Since the successful implementation of the Pectra, which enhanced network efficiency and user functionality, market sentiment has shifted dramatically,” Chen told CCN.
Chen also highlighted the recent surge in Ethereum ETF inflows as a strong signal for higher prices. From a technical standpoint, she noted that Ethereum’s current setup aligns with historical patterns that have preceded major rallies.
“After bouncing strongly off the $2,400 support level during last week’s market-wide pullback, ETH has stabilized. If current market trends persist, ETH will look to break the minor resistance that formed around the $,2640 and the next major resistance at the $2,730 zone. If bulls succeed in flipping these resistances, ETH is expected to move above $3000 in the coming weeks,” The MEXC COO added.
ETH Price Analysis: Breakout Looms
As previously reported by CCN, Ethereum’s price continues to maintain a bullish flag structure. This setup is similar to the pattern that propelled ETH above $4,000 in December.
The cryptocurrency surged to $3,499, entered a brief consolidation phase, and subsequently broke out past $4,000.
However, for history to repeat itself, Ethereum will need renewed buying pressure from retail and institutional investors.
If demand rises, ETH could breach the immediate resistance at $2,749, potentially setting the stage for a rally toward $3,069.
A further move toward $3,465 may be on the cards if broader market conditions also improve.
However, if ETH fails to climb above the flag’s upper trendline, the bullish scenario may falter, opening the door for a decline below the $2,000 threshold.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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