Ethereum is at a critical time as it approaches the $2,700 level and is widely seen as the next important resistance the Bulls have to overcome to confirm a bullish setup. This is because Bitcoin broke above its all-time high yesterday, pushing the crypto market into a new phase and potentially unleashing the massive profits of the entire altcoin. In Ethereum, this moment can define the next leg of that recovery rally.
Since early May, ETH has skyrocketed over 55%, driven by new investors’ trust, broader market strength, and increased capital turnover from Bitcoin to large Altcoins. Feelings are changing, and Ethereum’s ability to lead the charges could likely affect the pace of the alto season.
GlassNode data highlights the improved foundations behind the movement. In May, Ethereum regained its realised price for $1,900. This brought the average holder back to profit after a long stretch of red. It also costs $2,400 above the true market average, making it historically considered a reliable bull signal. However, clear breaks above $2,700 are essential to examine this trend and attract more momentum-driven capital. Whether ETH can provide that confirmation will shape the speed at which the Altcoin market can gain traction in the wake of Bitcoin breakout.
Ethereum is powerful as Altcoin Momentum builds
Ethereum is leading the price of Altcoin as it positions itself against what investors expect to see as a massive gathering in the coming weeks. After months of volatility, ETH reaffirmed its strength by regaining its key technology and on-chain levels. Since returning past the $2,200 mark, Ethereum’s price structure has been critically bullish, forming a higher low and consolidating around a critical zone of resistance, close to $2,700.
The Bulls are in good control and Ethereum is once again seen as a benchmark for wider altcoin sentiment. Currently, in a market environment defined by Bitcoin’s most recent all-time breakout, ETH is properly positioned to benefit from capital rotation to high-cap Altcoins. However, to fully verify the bullish continuity, Ethereum must infiltrate above and hold the $2,700-$2,900 range.
GlassNode on-chain data adds another layer of bullish convictions. In May, Ethereum surpassed its realised price by $1,900, bringing the average owner back into profit. This is a milestone that generally shows the trust of investors. ETH also surpasses its true market average by $2,400. This is an important historical indicator that is consistent with a strong accumulation stage.
However, the final hurdle is currently at an active realised price close to $2,900. Reclaiming that level not only confirms major structural breakouts, but also shows that recent buyers have held strong and confidence has returned on a massive scale. Until then, ETH remains a strong setup, but the next few sessions are important to ensure that Altcoin Market leaders are ready to make their next leg higher.
ETH Price Tests Major Resistance
Ethereum continues to be high, with prices now consolidating around 2,665 marks after temporarily touching on $2,734. Daily charts show that ETH has been holding a clear uptrend since early May. All important moving averages are upwards, with 34 EMA currently at $2,249 and 50 SMA currently at $1,965, far below current prices and strengthening the bullish construction.
The most immediate technical challenge lies in the 200-day SMA marked at $2,703. This long-term indicator acts as a dynamic resistance in previous cycles and is important to watch. Daily closings above this level could cause breakouts and confirm a wider bullish continuation, and could open the door to reclaim the area, perhaps from $2,900 to $3,000.
While recent green candles have seen a slight rise in volume and increased demand, testing the $2,700 zone could lead to short-term profits. Support will see around $2,445 (100 SMA) and $2,080 (close to the true market average). This can act as a cushion in the event of a pullback.
Dall-E special images, TradingView chart
