Ethereum (ETH) began the first week of June trading sideways around $2,500, despite growing optimism across the broader crypto market. Price action analysis suggests that Ethereum may be on the verge of a decisive move – but which way?
📊 Technical View: Daily Chart in Focus
On the daily chart, ETH remains just below the crucial 200-day simple moving average (SMA), which currently sits near $2,680. This level continues to act as strong resistance.
Ethereum briefly pushed above $2,700 last week but quickly pulled back. The last three daily candles reveal indecision – bulls and bears are evenly matched for now.
ETH trades around $2,519, staying above the 20-day ($2,145) and 50-day ($2,065) SMA. This convergence provides a strong support base, but bulls need to clear the 200-day SMA for sustained upside.
⏱ Short-Term Outlook: Hourly Chart Signals Weakness
On the hourly chart, Ethereum trades below all major SMAs – 20, 50, 100, and 200 – creating short-term bearish pressure. Immediate resistance lies at $2,521 (20-SMA) and $2,571 (50-SMA).
ETH has repeatedly failed to break above $2,520, indicating waning momentum. The current range between $2,485 and $2,520 suggests a potential breakout or breakdown is coming.
If ETH drops below $2,485, a retest of $2,350 is likely. A breakout above $2,571, however, would open the door toward $2,680 and potentially $2,750.
🔺 Fibonacci Analysis: Potential Targets
Using Fibonacci retracement from the April low of $1,620 to the May high of $2,750:
🔹 38.2% retracement = $2,357
🔹 50% retracement = $2,185
🔹 61.8% retracement = $2,012
ETH is holding above the 38.2% level. A daily close below $2,500 could trigger a move to the $2,350–$2,185 zone. A break below $2,185 could push ETH toward the psychological support at $2,000.
📉 Bears Still Hold a Slight Edge – For Now
Lower timeframes reveal that bears still have some control. A descending triangle with falling volume suggests a larger move is looming within 48–72 hours.
🔸 A break below $2,485 = likely slide to $2,350
🔸 A break above $2,571 = potential rally to $2,680–$2,750
🗓 Key Levels to Watch This Week
🔹 Support: $2,500
🔹 Short-term resistance: $2,570
🔹 Breakout target: $2,750
🔹 Bullish target: $3,000
If Bitcoin remains stable, Ethereum could push higher. A breakout above $2,750 would likely signal renewed bullish momentum toward $3,000. Failure to hold $2,500, however, could send ETH back toward $2,185 or lower.
🎯 Conclusion: Ethereum is preparing for a significant move. Traders should watch the key levels closely and stay patient – volatility is just around the corner.
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