Ethereum Faces Critical Resistance, Is a Rally to $3,000 Possible?
Ethereum is tightening in a narrow price band. The range—$2,650 to $2,750—has held firm for over two weeks. A decisive breakout is coming, but the direction remains uncertain. Technical analysis indicates a symmetrical triangle pattern on Ethereum’s 4-hour chart, suggesting potential for an upward movement. A successful breakout could target the $3,000 to $3,100 range.
Despite muted price action, smart money is accumulating. Ethereum gradually recovered as it traded around $16 billion trading volume in 24 hours. Long-term hodler are utilizing this opportunity as a buy moment.
The current Ethereum price set-up usually precedes a decisive move, as the $2,820 level might be a catalyst for the next bull activity.
Technical signals are conflicting. The Relative Strength Index (RSI) is currently around 50, indicating neutral momentum. The Money Flow Index (MFI) is approximately 57, suggesting a slight leaning towards buying pressure.
Also, institutional activity shows mixed signals with inflows and outflows throughout the week. US Ethereum ETFs recorded net outflows of $13.1 million on February 20, 2025. This divergence indicates varying levels of institutional confidence.
Despite the Ethereum price running low, Analyst Carl Moon feels bullish, he figures that the Token is forming a potential signal for $3,005.
A bullish scenario is also possible. Ethereum is at a crossroads. If bulls crack $2,850, a rally past $3,000 is likely. But failure to hold $2,600 could lead to a deeper drop. Traders should watch for confirmation before making moves.
