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Ethereum Recovery Gains Strength: Massive Comeback Above Key Support
Ethereum is back above the $2,500 level after a massive surge that flipped market sentiment nearly overnight. Following months of intense selling pressure that began in late December 2024, ETH spent most of the first quarter struggling to gain traction. However, last weeks powerful rallyan 80% gain in less than a monthhas shifted the tone across the market, reigniting optimism and setting the stage for what could be the beginning of a broader altcoin recovery. Related Reading: Solana Rallies Into Pivotal Zone $180 Level Could Define Next Move Top analyst Jelle shared a technical analysis noting that while Ethereums breakout is impressive, the asset still has a lot of work to do. ETH is now testing a key supply zone that previously marked significant resistance. Whether bulls can push through this area or face a temporary rejection remains to be seen. Still, the magnitude and speed of this recovery suggest that Ethereum may have completed a capitulation bottom and is building toward a more sustainable uptrend. For now, reclaiming $2,500 is a significant psychological and technical milestone. With momentum turning and broader market strength building, Ethereums price action in the coming days could help define the trajectory for the entire altcoin sector in Q2. Ethereum Tests Key Resistance After Explosive Weekly Surge Ethereum has surged over 44% in less than a week, reclaiming major resistance levels with strength and shifting sentiment sharply from bearish to bullish. After months of underperformance, ETH is now leading the charge in what many analysts believe could be the beginning of a long-awaited altseason. The broader market is showing signs of renewed momentum, but Ethereums breakout is particularly significant as it often signals capital rotation into altcoins. ETHs rally has taken it from sub-$1,800 levels to just above $2,500, breaking through key resistance areas that had held since January. Now, the price is testing a crucial supply zone between $2,600 and $2,800a region that previously acted as a distribution top and major rejection point. A successful break above this level could open the door for a move toward $3,000 and beyond. Jelle highlighted the scale of Ethereums comeback, noting that this massive bounce came after the market had largely declared ETH dead. Prices are now firmly back above critical support, and the reclaim of $2,500 is a major technical milestone. Still, as Jelle points out, theres a lot of work ahead before a full recovery is confirmed. While short-term momentum is clearly bullish, Ethereum must consolidate and build structure above this resistance to establish a sustainable uptrend. If that happens, the narrative for altseason becomes significantly stronger, especially after years of drawdowns across the sector. The coming days will be key as Ethereum tests the upper end of this resistance range and sets the tone for altcoins heading into the summer. Related Reading: HYPE Bulls Regain Control After Sharp Recovery Approaching Yearly Highs? ETH Tests $2,600 Resistance As Momentum Builds Ethereum is trading at $2,570 after an explosive rally that pushed the price from under $1,800 to a new local high at $2,625 in just a few sessions. The chart shows a clear vertical breakout, driven by surging volume and reclaim of major moving averages. ETH has now decisively broken above its 200-day EMA (currently near $2,436) and is testing the 200-day SMA around $2,701a zone that represents a significant area of supply. The steep angle of ascent suggests strong bullish momentum, but the price is approaching a key resistance confluence. Historically, the $2,600$2,800 range has acted as both support and resistance, meaning bulls need to consolidate above $2,500 to sustain the uptrend. This move also follows months of consolidation and a long period of underperformance. After a 66% decline from its December highs, Ethereums current rally signals a potential trend reversal. If bulls maintain this pressure and break above the 200 SMA, it could trigger a rapid continuation to $3,000 and beyond. Related Reading: XRP Whales Are Back 880 Million Tokens Accumulated This Month However, volume should remain elevated, and volatility is expected as sellers may step in at these levels. A short-term pullback wouldnt invalidate the trend, but failure to hold above $2,500 could stall momentum. Featured image from Dall-E, chart from TradingView
