Harish Vatnani, Head of Trade, ZebPay
Market Overview
Ethereum has experienced a strong bullish breakout over the past few weeks, recovering sharply from the $1,550–$1,600 demand zone and subsequently breaking above the $1,850 resistance area. The recent price action has also resulted in a decisive breakout from the broader descending trendline that had been limiting upside momentum since the April–May highs.
At the time of writing, ETH is trading around $2,513, after reaching above the $2,500 level. The market has shifted from the previous consolidation phase into a strong bullish expansion, with buyers firmly in control of the short to medium term structure.
The breakout above the $1,850–$1,900 region was accompanied by a significant increase in buying activity, strengthening the validity of the move. However, ETH is now approaching an important resistance area around $2,550–$2,600, where some profit-taking or short-term consolidation could occur.
As long as ETH continues to hold above the recent breakout zones, the broader daily structure remains favourable for further upside.
Technical Analysis
Since the previous consolidation around the $1,850–$2,000 region, Ethereum has developed a clear sequence of higher lows and higher highs. The most significant development has been the decisive breakout above the $1,850–$1,900 resistance zone and the long-term descending trendline.
The breakout was supported by strong buying activity, with ETH subsequently moving above the psychological $2,000 level and reaching approximately $2,513. This confirms a significant improvement in the daily market structure and indicates that buyers currently have control.
However, after the sharp rally, ETH is now approaching the $2,550–$2,600 resistance zone, where some consolidation or profit-taking could occur. The key support to watch is $2,400–$2,450, followed by $2,200–$2,250.
As long as ETH holds above the recent breakout zones, the broader bullish structure remains intact. A decisive daily close above $2,600 would strengthen the case for further upside, while a sustained break below $2,200 would weaken the current bullish momentum.
Outlook
The overall daily bias remains bullish, with Ethereum currently trading in a strong upside momentum phase.
If buyers successfully maintain price above the $2,400–$2,450 support zone, another attempt toward the $2,550–$2,600 resistance is likely. A convincing daily close above $2,600 would strengthen the bullish outlook and could bring the next resistance area around $2,750–$2,800 into focus.
A successful breakout above $2,800 could subsequently open the way toward the psychological $3,000 level. A decisive daily close above $3,000 would further strengthen the medium-term bullish structure and could allow the rally to extend toward higher levels.
On the other hand, if Ethereum fails to sustain the recent breakout and closes below $2,400, short-term momentum would weaken and price could revisit the $2,200–$2,250 support zone.
A daily close below $2,150 would represent a more significant deterioration in the current structure, while a sustained break below the $1,850 region would invalidate much of the recent bullish breakout and increase the probability of a deeper correction.
For now, the recent price action suggests that Ethereum has transitioned from the previous consolidation phase into a broader recovery and breakout phase. Short-term consolidation after the sharp rally would not necessarily indicate a trend reversal, provided the major breakout zones continue to hold.
At the time of writing, ETH was trading at approximately $2,513.
Summary
ETH is currently bullish after breaking out of a long consolidation and descending trendline. $2,400 is the key near-term support, while $2,550–$2,600 is the immediate resistance. Sustained trading above $2,400 keeps the upside targets of $2,800 and $3,000 in focus.”