Ethereum (ETH) witnessed a notable rebound on Tuesday, surging nearly 7% after briefly slipping to around $2,475 earlier in the trading session. This sharp upward movement marked a recovery from recent losses and was largely fueled by renewed investor optimism surrounding the launch of a new blockchain protocol.
However, despite the strong bounce, Ethereum’s price encountered a significant technical barrier near $2,750. This level aligns with a rising trendline that has acted as resistance since May 18, preventing further upward momentum. For Ethereum to continue its bullish trajectory, a confirmed breakout above this trendline is essential, with the next key target zone set between $2,750 and $2,850.
Key Resistance and Support Levels
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Immediate Resistance: $2,750 – This level has proven difficult to breach, having rejected multiple upward attempts. A sustained move above this resistance would likely trigger more buying interest and confirm bullish continuation.
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Major Resistance Zone: $2,850 – If ETH successfully clears $2,750, this level becomes the next significant upside hurdle, corresponding with recent swing highs.
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Short-Term Support: $2,450 – ETH may find buying interest around this level, especially as the 100-period Simple Moving Average (SMA) is hovering nearby, offering dynamic technical support.
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Stronger Support Zone: $2,250 – This area has historically acted as a demand zone and could serve as a safety net in the event of a deeper retracement.
Technical Indicators Suggest Cautious Optimism
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Relative Strength Index (RSI): Currently above the neutral 50 mark, indicating a bullish bias but not yet overbought—signaling room for potential upside.
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Stochastic Oscillator: Also remains in bullish territory, although nearing overbought levels, suggesting that upward momentum may slow down or consolidate before another leg higher.
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MACD (Moving Average Convergence Divergence): Shows a bullish crossover and positive histogram values, reinforcing short-term strength.
While these indicators suggest positive sentiment, the lack of a decisive breakout above the $2,750 resistance keeps the bullish case in check. Until that level is cleared, ETH remains vulnerable to pullbacks.
Liquidation Data Shows Market Tension
According to derivatives data from Coinglass, Ethereum futures saw a total of $45.7 million in liquidations over the past 24 hours. This includes $24.9 million in short positions and $20.8 million in long positions—a sign of intense market volatility. The near-equal distribution between long and short liquidations reflects uncertainty among traders and a battle for control of ETH’s next direction.
Fundamental Catalyst: New Protocol Launch
The renewed market excitement partially stems from the recent launch of a new Ethereum-based protocol, which has brought increased network activity and volume. Although still in its early stages, the protocol’s potential to enhance Ethereum’s ecosystem and scalability has attracted investor attention and could play a key role in supporting ETH price in the mid-to-long term.
However, as with any protocol launch, the market tends to exhibit high volatility in the short term, with speculation often outpacing fundamentals. This makes it critical for traders to differentiate between hype and sustainable growth.
Outlook: A Break or a Fade?
For Ethereum to reclaim bullish dominance and resume its march toward $3,000 and beyond, it must break above $2,750 with conviction, supported by strong volume and positive sentiment. Until then, ETH is likely to consolidate between the $2,450 and $2,750 range, with traders watching for either a breakout or a failure that could lead to a deeper correction toward $2,250.
Conclusion
Ethereum’s price action remains at a critical juncture. While technical indicators and investor sentiment lean slightly bullish, resistance at $2,750 stands firm. The coming days will be pivotal as traders assess whether the recent protocol launch will provide enough momentum to overcome current headwinds or whether Ethereum will retreat for another consolidation phase.
