- Ethereum is consolidating around $2,500 after nearly doubling from its April low, signaling a potential pause in its uptrend.
- Technical indicators and breakout patterns suggest further upside is likely if support levels hold.
After nearly doubling from its April lows, Ethereum (ETH) is catching its breath—hovering near the $2,500 mark and forming what may be a pivotal consolidation range.
ETH broke free in late April from a long-term descending wedge, confirming a major trend reversal. This bullish breakout was accompanied by rising trading volume and reclaimed several key resistance levels, notably the 0.5 Fibonacci retracement level at $2,503—often seen as a battleground between bulls and bears.
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From a macro perspective, ETH completed a prolonged WXYXZ correction from its $4,100 peak, bottoming out near $1,436 in early April. The breakout signaled a new impulsive wave structure, and the price quickly surged to a local high near $2,738. Analysts suggest this move confirms the start of a broader bullish cycle.
Currently, Ethereum is trading sideways around $2,580, indicating a possible pause before another leg up. On lower time frames, a five-wave advance appears complete, and a descending consolidation—likely a bull flag—has broken to the upside. This is often a continuation pattern, reinforcing the bullish bias.
Technical indicators support the bullish case. The 4-hour RSI is establishing higher lows, confirming momentum strength. On the hourly chart, RSI has reset and is trending upward again, a sign that bulls may be preparing for another push.
Key resistance lies at $2,880, which aligns with the 0.382 Fibonacci level and the top of wave (v). A successful breakout above this level could send ETH toward $3,000–$3,080, revisiting zones of historical supply.
However, failure to hold above $2,580 could see ETH revisit $2,503, or even dip to the $2,125 zone—the 0.618 Fib retracement—without necessarily invalidating the bullish trend.
As long as ETH remains above $2,125, the larger bullish structure stays intact. Traders are watching closely: will this be a healthy breather—or the beginning of a deeper retracement
