Ethereum has climbed to almost $2,700 after bouncing from lows near $1,518 signaling strong buyer interest and recovery potential.
Resistance at $4,000 remains critical as past price moves show that breaking this level could lead to further gains or possible pullbacks.
Momentum indicators and trendlines support a positive outlook but traders are closely watching the $4,000 zone for confirmation.
Ethereum (ETH) has shown a notable uptrend, nearing the $2,700 mark on May 29, 2025, according to recent market data. The price has recovered sharply from lows near $1,518 seen earlier this year, signaling strong bullish momentum. Technical charts reveal critical resistance near $4,000, a level last touched in mid-2024. Traders are closely watching the unfolding price action to assess whether ETH can break above this key threshold and sustain its rally.
Source: X Technical Indicators Show Strong Momentum with Resistance at $4,000
Ethereum’s price movements in the past three years reveal a consistent uptrend supported by several technical factors. The chart shows a green ascending trendline providing support since mid-2022, reflecting a gradual but steady increase in buying pressure. This trendline has helped ETH rebound from lows below $1,600 multiple times, highlighting a resilient market foundation.
A major resistance level, marked by a red horizontal line around $4,000, has capped price advances since early 2024. ETH’s price spiked toward this point in April 2024 but failed to close above it. This resistance zone remains pivotal for traders aiming to confirm a sustained breakout.
Moreover, the Relative Strength Index (RSI) indicates strong momentum as it climbed above 60 in recent sessions. This suggests buyers currently dominate but also warns of potential short-term pullbacks. RSI readings below 30 earlier this year coincided with price bottoms near $1,500, signaling oversold conditions that have since reversed.
Past Price Patterns Suggest Volatility but Positive Long-Term Outlook
The historical price action reveals repeated cycles of sharp rallies followed by corrections. In 2022, ETH fell sharply below $1,600 before recovering above $3,000 by late 2023. Similar volatility is evident in mid-2024, where the price surged to nearly $4,000 before retracing.
Price patterns on the chart also show key Fibonacci retracement levels acting as support and resistance. The recent bounce from the $1,518 low aligns closely with the 0.618 retracement level from previous highs, a common indicator of trend reversals.
Additionally, wave patterns traced on the chart highlight Elliott Wave structures, showing cyclical movements in ETH’s price. These patterns help traders anticipate potential pullbacks and breakouts within established ranges. The latest upward wave suggests a possible extension toward the $4,000 resistance line.
Market Sentiment Reflects Optimism Amid Critical Price Zones
Social media discussions and expert commentary reflect growing optimism about Ethereum’s price trajectory. Analysts point to the current range as a decisive moment, where breaking above $2,700 daily close could unlock further gains.
Investor activity has increased, with notable volume surges accompanying price advances. This is reflected in open interest data and futures markets, where longer positions have risen substantially since April 2025.
Despite the positive momentum, the market remains cautious due to the resistance near $4,000. Failure to breach this level could trigger consolidation or corrective moves. However, surpassing it might lead to accelerated price gains, enticing more traders to join the bullish trend.
The pivotal question remains: can Ethereum maintain its momentum to breach the $4,000 resistance and enter a new growth phase? Market participants will closely monitor price behavior in the coming weeks to gauge Ethereum's potential trajectory.
