Ethereum surges 100% from April lows, but can it break the $2,850 barrier?

Ethereum (ETH), the world’s second-largest cryptocurrency, has staged a powerful comeback, surging more than 100% from its April lows below $1,400 to a recent high near $2,800. However, the rally has entered a period of consolidation, with the asset now trading in a tight range between $2,475 and $2,650 over the past eight weeks.

At the time of writing, ETH was quoting at $2,628, according to data from CoinMarketCap.

Despite the sideways price action, investor confidence remains intact. According to Harish Vatnani, Head of Trade at ZebPay, Ethereum-based investment products recorded $226.4 million in net inflows last week. “These products are now averaging weekly inflows of 1.6% of assets under management—double that of Bitcoin’s 0.8%,” he said.

Adding to the bullish backdrop, on-chain data from Glassnode shows that ETH balances on centralised exchanges have dropped to an eight-year low of 13.5%, suggesting long-term holders are increasingly shifting assets to cold wallets.Meanwhile, after touching a high of $2,879, Ethereum witnessed a 26.5% correction, falling to a low of $2,111. It then rebounded strongly from the key support level of $2,150, climbing back toward the current trading range.

“ETH is now moving sideways in the $2,475–$2,650 band with low volumes,” said Vatnani. “To trigger the next leg up, ETH must break and sustain above $2,675 and $2,850—both of which are strong resistance levels. On the downside, $2,350 and $2,150 serve as critical support.”

Ethereum’s price action reflects a classic tug-of-war between bullish momentum and technical resistance. The sustained inflows into ETH investment products and the declining exchange supply point to strong investor conviction. But for the rally to continue, Ethereum must overcome its current ceiling.“Technical momentum is constructive, but we need a clear breakout above $2,850 to confirm the next leg higher,” Vatnani added.

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With institutional inflows rising and exchange balances dropping, all eyes are now on whether ETH can convert its range-bound consolidation into a decisive breakout.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)