Ethereum’s recent bullish momentum has shown signs of pausing, with profit-taking among investors putting pressure on prices. Currently trading at around $2,438, ETH has fallen by approximately 3.5% in the last 24 hours, following a remarkable 34% surge over the past week.
The rapid increase from the $1,800 mark to above $2,500 was facilitated by a notable lack of resistance in that price range, according to recent analysis. The rally, however, encountered heavy resistance near $2,580, a critical zone marked by considerable prior accumulation of approximately 1.3 million ETH. As prices neared this level, roughly 300,000 ETH were liquidated by holders close to their breakeven point, causing the recent downturn.
Data from Coinglass indicates that Ethereum open interest has concurrently declined by 2%, suggesting a decrease in leveraged trading positions after the price rally. Furthermore, market insight from CryptoQuant highlighted that this latest ETH surge was predominantly fueled by genuine spot buying rather than speculative leveraged trades. Ethereum funding rates have remained flat over recent days, supporting the assessment that buyers on the spot market have driven much of the price appreciation. Spot-driven gains are generally regarded as more sustainable and less susceptible to sudden market corrections caused by mass liquidation.
From a technical view, Ethereum’s daily Relative Strength Index (RSI) reached 75, indicating the asset is currently in overbought territory. Such conditions typically result in market exhaustion and may suggest a potential short-term pullback or consolidation. However, Ethereum continues to display strong fundamentals from a technical standpoint. ETH remains well-positioned above several significant short- and medium-term moving averages, including the 10-day, 20-day, 30-day, 50-day, and 100-day exponential and simple moving averages. Additionally, the Moving Average Convergence Divergence (MACD) remains positive at 187.5, suggesting underlying bullishness still persists within Ethereum’s current trading landscape.
Immediate resistance is identified at around the $2,474 price level. If ETH can break above this marker with sustained conviction, further upward momentum could continue, potentially even challenging the key $2,580 resistance once more. Conversely, failing to hold above the critical $2,400 level could prompt prices to retrace toward the supportive range around $2,200 over the coming sessions.
Overall, market participants will closely watch Ethereum’s ability to either consolidate sufficiently at its current value range or successfully surpass the major resistance barrier near $2,580 in the short term.
