Ethereum has traded for over $2,500, showing noticeable strength across the broader crypto market despite recent volatility. Since early May, ETH has been locked in a consolidated range of $2,400 to $2,700, and has struggled to establish a clear trend as both bulls and bears wait for confirmation. However, recent price action suggests an increase in momentum, with the bull still maintaining control over the main support zone.
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Top analyst Carl Runefelt shared a technical analysis that points to the critical moment beyond Ethereum. According to RuneFelt, breakouts above the $2,700 resistance level are essential to ignite impulsive movements to higher levels. Without that breakout, ETH risks what is bound to the rest of the spectrum.
The current market structure, combined with positive sentiment surrounding altcoins and growing institutional interest in Ethereum, contributes to optimism. Still, the next day is important. A sustained move above $2,700 could open the doors of the rally heading towards more than $3,000, but a failed escape could delay Ethereum’s next major leg. Once Bitcoin falls below its all-time high, Ethereum’s next move could also determine the short-term trajectory of the overall Altcoin market.
Ethereum leads Altcoin recovery
Altcoins have been stuck in the long-term bear market since 2022, with many tokens still far below the all-time high. Amid this challenging background, Ethereum has emerged as a potential recovery leader. Since its April low, ETH prices have more than doubled, recovering key support levels above 100% and above $2,500. This sharp rebound suggests that Ethereum’s new bullish stage, and potentially a wider Altcoin market may be in its early stages.
However, optimism is alleviated by increasing macroeconomic risks. Recent US data raises concerns about systemic vulnerability along with rising Treasury yields and sustained rise inflation that drives uncertainty across risk assets. Investors are cautious as higher yields can limit the flow of liquidity to crypto, particularly speculative altcoins.
According to Carl Runefelt, Ethereum’s price structure is approaching a key point. He emphasizes that ETH is currently trading within the rising wedge pattern. Runefelt warns that if Ethereum cannot immediately break the $2,700 resistance level, the price will reject and fall towards lower support, potentially leading to a dramatic fix.
For now, Ethereum remains bound to range between $2,400 and $2,700. A confirmed breakout above the upper boundary could fuel continuous bullish momentum and lead to a wider altcoin rally. However, the failure to maintain current levels, especially in the construction of bearish macro pressures, could indicate that recent benefits are temporary relief rallies. Ethereum’s next move could define the short-term direction across the Altcoin sector.
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ETH faces critical resistance as momentum grows
Ethereum trades at $2,574.70, showing strength above 2.2% in the last session. As shown in the three-day chart, ETH has been bound to range since early May, fluctuating between $2,400 in support and $2,700 in resistance. The latest move above the simple 50-day and 100-day moving averages (SMA) is currently at $2,226 and $2,644, with bullish momentum. However, Ethereum still faces major challenges near the 200-day SMA, currently below the $2,800 liquidity level at $2,791.
Prices have tested this resistance zone many times without success, suggesting that a strong breakout of over $2,700-$2,800 is needed to start an impulsive move. The volume remains stable and ETH’s ability to retain recent profits suggests a continuous accumulation, but the lack of critical follow-through may indicate buyer fatigue.
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If the Bulls can get back $2,800, they’ll open the door towards $3,000 to see a breakout from the months range. On the downside, failing to hold $2,500 could lead to a drop-back to $2,400 or $2,200 if broader market conditions deteriorate. For now, ETH remains in a pivotal zone, and the next major movement could determine the broader Altcoin momentum.
Dall-E special images, TradingView chart
