Ethereum (ETH) Retreats After $2,700 Surge, Analysts Still See Bullish Signs
- Ethereum fell 4.56%, dropping below $2,500 after failing to hold recent momentum.
- Crypto Patel sees support near $1,810$2,100; future rally could reach $4,000$5,000.
- Bullish MACD crossover, noted by Crypto Rover, echoes past setups before major price increases.
Ethereums recent surge past $2,700 has lost steam, with the price slipping 4.56% in the last 24 hours. The drop pushed ETH under $2,500, signaling a broader cooling across the crypto market. Traders are now weighing if this marks the end of the rally or just a short pause.
Popular analyst Crypto Patel sees the recent slide as a reaction to Ethereums rejection at the $2,500 Fair Value Gap zone. According to him, ETH is entering a correction phase and could drift lower into the $1,930 to $2,100 range. He pointed out that this area sits near a bullish order block at $1,810, where investor accumulation often rises. This could offer a chance for buyers to return and reset for a future run.
If Ethereum does manage to gather strong demand in this zone, Patel suggests the next bullish cycle might push ETH to as high as $4,000$5,000. But the immediate pressure remains on support levels as the asset cools off after recent gains.
Institutional Buying Ramps Up Despite Dip
While the pullback has rattled short-term sentiment, institutional players are showing renewed interest. Abraxas Capital recently made a notable move, purchasing over $650 million worth of ETH in just the past few weeks. This marks one of the largest institutional Ethereum buys on record, hinting that long-term confidence remains intact.
Ali Martinez, another market analyst, reports that Ethereum whales have been steadily increasing their positions. Over the past month, theyve added more than 450,000 ETH to their holdings. This signals that major investors are using the price dip as a buying opportunity.
On-chain data backs this up. According to CryptoQuant, Ethereum has gained ground against Bitcoin.. The ETH/BTC ratio is up 38% from its five-year low, suggesting Ethereum has possibly bottomed out compared to Bitcoin.
Analysts Still Bullish on Ethereums Future
Crypto Rover remains optimistic about Ethereums chart setup. He pointed to a bullish MACD crossover on the weekly chart, which has historically signaled large upward moves. Similar patterns in late 2023 and 2024 were followed by strong rallies.Rover suggests this could send ETH back toward the $4,000 range.
Michaël van de Poppe shares a similar view. He described the current dip as a steal and believes it presents a strong buying zone, especially with ETH trading under $2,400. According to his analysis, this correction is part of a larger pattern that could drive it toward all-time highs later this year.
Ethereums chart shows resistance between $2,600 and $2,850, a zone it recently failed to break. This level is key for future gains. On the support side, the range between $2,111 and $2,233.80 holds as the higher timeframe support zone, indicating the structure remains favorable for bulls.
While short-term traders might see the recent drop as a setback, broader signals suggest Ethereums upward move isnt finished yet. Whether this is a temporary retreat or part of a larger move remains to be seen, but the underlying activity points to a market still very much engaged.
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Read more: https://www.tronweekly.com/ethereum-eth-retreats-after-2700-surge/
Text source: TronWeekly
