$ETH

Ethereum (ETH) Surges Past $2,340: What’s Fueling the Rally and What’s Next?

Ethereum has just posted a remarkable surge, jumping over 13% in the last 24 hours to trade at $2,340.62, with intraday highs reaching $2,490.77. This move marks one of the sharpest upward spikes for ETH in recent months and signals renewed bullish momentum in the crypto market.

What’s Driving Ethereum’s Surge?

Technical Breakout: ETH broke out of a multi-week consolidation range capped by $1,970 resistance, triggering a wave of buying.

The price action shows a vertical spike from around $1,850 to above $2,200, with bulls now aiming to turn $2,200 into a new support level.

Volume and On-Chain Activity: Trading volume soared, with over $12.3 billion exchanged in the last 24 hours, reflecting both institutional and retail interest. This heightened activity is a classic signal of strong trend momentum.

Macro Factors: The rally coincides with increased volatility in traditional markets, with some traders rotating into crypto as a hedge. Ethereum’s high correlation with the S&P 500 means equity market moves are impacting crypto sentiment.

Short Technical Analysis

Moving Averages: ETH is trading well above its 20, 50, and 100-day EMAs, with the 20-EMA at $1,970 now acting as dynamic support.

RSI & MACD: The RSI recently hit 76.94, indicating overbought conditions, but remains elevated, suggesting sustained bullish strength. The MACD shows a strong bullish crossover, though short-term consolidation is possible as histogram bars begin to compress.

Key Levels: Immediate support is at $2,200, with resistance now at $2,500. If ETH holds above $2,200, a move toward $2,500 and beyond is likely. If selling pressure emerges, $2,200 and $2,100 are the critical zones to watch.

Outlook and Opportunity

Historical data shows that May is often a strong .

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