Ethereum (ETH) Price: Breaking $2,500 Barrier With 40% Weekly Gain

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Ethereum has surged back into the spotlight with a powerful 40% weekly gain, breaking through the psychologically significant $2,500 resistance level. As the second-largest cryptocurrency by market capitalization, ETH’s recent rally has reignited investor confidence after months of consolidation and bearish sentiment. The momentum has lifted millions of holders out of the red, many of whom purchased during the market downturn that bottomed near $1,386 earlier this year.

The Technical Surge: From Reversal to Breakout

The explosive price movement began between May 8 and May 10, when Ethereum rapidly climbed from $1,812 to $2,584. This sharp ascent formed three consecutive bullish candles on the daily chart—a pattern known among traders as the “triple white soldiers.” This formation is widely interpreted as a strong reversal signal, indicating sustained buying pressure and a shift in market sentiment from bearish to bullish.

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The broader technical structure supports this optimism. Ethereum’s recovery traces a classic rounding bottom pattern, a “U”-shaped reversal that often precedes major bull runs. Starting from its two-year low during the tariff-driven market slump, ETH not only reclaimed previous resistance levels but also surpassed its March peak of $2,517. This breakout confirms a trend reversal and sets the stage for further upside.

Technical analysts use the depth of the “U” to project potential price targets. By measuring the distance from the lowest point to the breakout level and adding it to the breakout price, a projected target of $4,570 emerges—an 81% increase from current levels. While this is not a guarantee, it highlights the potential magnitude of the ongoing rally if bullish momentum holds.

Currently, ETH is trading above the 200-day Exponential Moving Average (EMA), a key long-term trend indicator. This position reinforces the bullish case, suggesting that the market has shifted into a higher-order uptrend. Meanwhile, the Relative Strength Index (RSI) has entered overbought territory, reflecting strong buyer dominance. While overbought conditions can precede short-term pullbacks, they also confirm powerful upward momentum.

Key Support and Resistance Levels

Despite the bullish momentum, traders must remain cautious of potential corrections. A critical support zone lies around $2,430**, where the 200-day EMA converges with the 50% Fibonacci retracement level. If Ethereum fails to hold above this area, the uptrend could be invalidated, potentially leading to a retest of the **100-day EMA at $2,144.

On the upside, liquidity pockets at $2,718** and **$2,878—identified through ETH’s six-month liquidation heatmap—could act as natural price magnets. These levels align with a supply zone between $2,750 and $2,820 on the 3-day chart, a region where profit-taking by short-term traders may slow upward progress.

Investor Sentiment and On-Chain Profitability

A major driver behind the sustained rally is improving investor sentiment. According to IntoTheBlock’s Global In/Out of the Money data, approximately 6.61 million investors are nearing profitability on 66.96 million ETH holdings. These positions were acquired at prices between $2,360 and $2,557, with an average entry of $2,462.

Crossing above $2,557 would mark nearly 67 million ETH as profitable—a psychological milestone that could strengthen support and reduce selling pressure. Historically, when large cohorts of investors move into profit, they tend to hold rather than sell immediately, creating a stabilizing effect on price.

Spot Demand Fuels Sustainable Growth

Unlike past rallies driven by leveraged trading, this upswing is underpinned by strong spot demand. Data from Coinalyze indicates that increased organic buying over the past month has laid a solid foundation for the current price action. This reduces the risk of a sudden sell-off triggered by short-term profit-taking.

Additionally, spot Ethereum ETF inflows have begun to pick up, signaling institutional interest. Nearly three weeks ago, ETH jumped 12% in a single day—from $1,580 to $1,770—followed by four days of sustained spot buying. Although momentum paused temporarily, the underlying demand remained robust.

The percentage of ETH supply in profit had previously dropped to levels not seen since November 2022 but has since rebounded sharply. Notably, it has not yet reached 95%, a threshold often associated with market tops. This suggests that while sentiment is improving, the market is not yet overheated—leaving room for further gains.

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Network Fundamentals: Staking and Supply Trends

Fundamental improvements are also supporting price growth. The upcoming Pectra upgrade has attracted heightened participation in Ethereum staking—not just from retail investors but also institutional players. Increased staking inflows reflect growing confidence in Ethereum’s long-term scalability and security post-upgrade.

Moreover, exchange reserves of ETH continue to decline, indicating that holders are moving their assets off exchanges and into private wallets. This accumulation phase is typically observed during early recovery stages and suggests strong conviction in future price appreciation.

Frequently Asked Questions (FAQ)

Q: What caused Ethereum’s 40% price surge?
A: The rally was driven by a combination of technical breakout patterns (like the rounding bottom and triple white soldiers), strong spot demand, ETF inflows, and growing staking activity ahead of the Pectra upgrade.

Q: Is Ethereum’s rally sustainable?
A: Yes—unlike previous rallies fueled by leverage, this one is supported by organic spot buying and declining exchange reserves, both signs of healthy market structure and long-term holder confidence.

Q: What is the next major resistance level for ETH?
A: Key resistance lies between $2,750 and $2,820. A breakout above this zone could open the path toward $3,000 and beyond.

Q: Could Ethereum reach $4,570?
A: Technical analysis based on the rounding bottom pattern suggests $4,570 is a plausible target if current momentum continues and support levels hold.

Q: What happens if ETH drops below $2,430?
A: A break below $2,430—the confluence of the 200-day EMA and 50% Fibonacci level—could invalidate the uptrend and trigger a deeper correction toward $2,144.

Q: How does staking activity affect ETH’s price?
A: Rising staking inflows reduce circulating supply and signal long-term confidence in Ethereum’s network upgrades, providing fundamental support for price growth.

Outlook: Consolidation Before the Next Leg Up?

While Ethereum has decisively broken above $2,500, an immediate push toward $3,000 is uncertain. Market structure suggests that a period of consolidation below $2,800 may be necessary to absorb selling pressure and build momentum for the next phase of growth.

For now, bulls remain in control. With nearly 67 million ETH approaching profitability, spot demand strengthening, and network fundamentals improving, Ethereum’s price trajectory looks increasingly promising.

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