Ethereum Price Forecast: Can ETH Break Through the Important Support Level of $2,500 or is a Collapse Imminent?

Last week, ETH had the strongest performance since December 2020, but with the fall to $2500, the forecast for Ethereum price increase is being doubted. After the US-China trade agreement and the launch of the Pectra hard fork, the obstacles in the market that have caused the leading altcoin to stagnate are gradually disappearing. The price increase has ended a month-long consolidation phase, within the range of $1450 to $1900. Overcoming this barrier, ETH has a basis to discuss “the best cryptocurrency to buy”. Why Is This Price Surge Different From Other Coins Unlike many other cryptocurrency price surges driven by excessive leverage and speculation, the recent price movement of Ethereum has primarily been driven by actual demand in the spot market. Last week, the estimated leverage ratio of Ethereum (ELR) fell sharply from 0.76 to 0.69, according to data from CryptoQuant. This downward trend indicates that derivatives traders are using less leverage.

Along with a significant outflow of funds—around 323,700 ETH has left exchanges in just the past four days—and the amount staked has increased by more than 180,000 ETH just last week. These measures strongly imply that, rather than engaging in short-term speculative trading, investors are employing longer-term holding techniques. Ethereum Price Analysis: Can the Uptrend Continue? The slowdown aligns with bearish technical signals. The daily RSI has surpassed the overbought zone at 80, a clear indication that buyers have exhausted. What goes up must come down - a small adjustment seems to be the next natural step to rebalance the scales. However, the symmetrical triangle pattern formed since 2021 has returned after a temporary fake breakout. This recovery move is supported by strong momentum indicators.

The RSI index has broken into the bullish zone above this signal line after oscillating around the level of 40 - an initial indicator that selling pressure has given way to a bullish trend. More importantly, the MACD has shifted to a bullish trend for the first time since the rally following the inauguration. The price line has crossed above the signal line in a golden cross bullish pattern - a pattern indicating a long-term trend change in such a high time frame. The 200 SMA has also returned as a strong support level, signaling a potential bottom for the correction and further reinforcing the view of the long-term bullish trend that is forming. If buying pressure returns, Ethereum may aim to break out of this triangle, with the next important target being the resistance level of $2,970 - an immediate increase of 17%. To retest the upper resistance level, the price will need to increase by 50% to around $3,750. Basic factors such as the upgrade of Pectra and improving macro conditions further strengthen the cautiously optimistic long-term outlook for Ethereum.