Wednesday saw Ether's price surge over 7% from its intraday low, surpassing the $2550 threshold and **successfully breaking through a key resistance level**. The "king of alts" rebounded strongly from the $2380 support level, reaching the $2585 zone and establishing a new two-week high.
Strong Breakthrough of Key Resistance
Since its early May breakout, ETH has primarily been in lateral consolidation within the $2400–$2800 range. However, after losing the $2550 support level two weeks ago, it briefly dropped below this range. Although ETH **recovered its losses**, it remained **stalled at the $2500 resistance level, oscillating between the lower edge of this range and the resistance level for nearly a week. Today, with the broader market recovery (Bitcoin also rose to $109,600), investor optimism has significantly increased**.
Analyst Perspective: Hold the Key Support Level
Regarding today's movement, analyst Daan Crypto Trades stated Ethereum displayed a "beautiful breakout within a local range." However, he emphasized that bulls must maintain the $2520 zone to confirm this isn't "another fake breakout or liquidity trap within a larger fluctuation range." If this level is lost, ETH risks **retesting the range's bottom again**. Thus, the **key support level is $2310, and resistance is at $2735**.
Market observer Merlijn The Trader highlighted that Ethereum "consistently maintains support," forming "one of the cleanest breakout setups we've seen." He analyzed a three-month ascending triangle pattern on ETH's chart, noting the price successfully rebounded from the ascending support line after a recent fake breakout, with the target aiming for the key resistance near $2700.
“Ethereum is gearing up. Lows are rising, foundations are solid, MACD bullish crossover. If it can cleanly break $2700... ETH will soar. $3000 is just the start—the real market lies beyond.”
Will History Repeat? Could ETH Retrace Its Path to Former Peaks?
Merlijn also claims ETH's two-year cyclical pattern is currently repeating, potentially signaling a massive breakout movement is imminent. His chart analysis shows Ethereum's price has mainly evolved in ~two-year cycles since 2018:
- Consolidation Phase: Price forms a base.
- Pullback Phase: Price retests lows.
- Liftoff Phase: Price surpasses and reaches a new all-time high (ATH).
During the last liftoff phase (2020–2022), ETH climbed from ~$100 to **an ATH of $4878. Merlijn estimates: "This time, we're starting from $1500. It’s not a setback but a launch platform**."
Unsurprisingly, analyst Kaleo also noted this cycle is structurally similar to the last. He recalled that in December 2020, when Bitcoin reached its then-ATH, Ethereum was still 60% below its prior cycle peak, with many investors even calling it "dead." Yet ETH later exploded by over 800%, far outpacing Bitcoin's 250% rise.
This cycle, ETH has seen a max 68% retracement from its prior ATH, while Bitcoin has already set new highs. Kaleo summarizes: "If history repeats, ETH’s bottom is in. From here, it’s only up."
As of writing, Ethereum's trading price is $2568 with a 6.1% weekly increase.
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FAQ
What caused Ethereum’s recent price surge?
The surge was driven by a combination of broader market recovery, renewed investor optimism, and a technical breakout above the key $2500 resistance level.
How critical is the $2520 support level?
Maintaining $2520 is essential to confirm the breakout’s validity. Losing it could lead to a retest of lower support levels.
What’s the long-term outlook for ETH?
Analysts suggest ETH is poised for significant growth, with potential targets exceeding $3000 if key resistance levels are breached. Historical patterns indicate strong upward momentum.
(Source: NewsBTC)