ETH eyes recovery above $2,500 and $2,850 key levels
Ethereum (ETH) is showing signs of a potential recovery, with key resistance levels at $2,500 and $2,850 being closely watched by traders and analysts. Here's a concise breakdown based on current market dynamics:
Current Price and Momentum: As of recent data, ETH is trading around $2,500 after a sharp 9% daily surge and a 40% weekly gain, following a drop to $1,400 on April 9, 2025. The price has rebounded from critical support near $2,500, aligning with the 0.5 Fibonacci retracement level, signaling strong buying activity.
Key Resistance Levels:
$2,500: This level has acted as both support and resistance recently. A sustained break above $2,500 could confirm bullish momentum, with analysts on X suggesting targets of $2,800 or higher if it holds as support.
$2,850: A move above $2,850 would indicate a stronger recovery, potentially targeting $2,920 or $3,000 in the near term. This level has been highlighted as a major resistance zone, with bears likely to defend it.
Technical Indicators:
Bullish Signals: The 4-hour chart shows a potential reversal, with RSI trending upward and buyer pressure slightly ahead of sellers. A breakout above $2,881 (0.382 Fibonacci) could confirm a trend reversal.
Bearish Risks: Failure to clear $2,580–$2,650 could lead to a decline toward supports at $2,350 or $2,200. The hourly MACD is losing momentum in the bearish zone, suggesting caution.
Market Sentiment: Posts on X reflect optimism, with some predicting ETH could reach $4,000–$6,000 if $2,500 holds, though a drop to $1,700 remains a risk if support fails. On-chain data shows rising buying pressure, and the DeFi ecosystem’s $80 billion TVL milestone supports long-term bullishness.
Potential Catalysts: The Pectra upgrade introduces new risks but also highlights Ethereum’s ongoing development. A potential spot ETF and increasing institutional adoption could further fuel upward momentum.
