Ethereum (ETH) Holds Above $2,500 as Bulls Defend Key Support Levels

Ethereum is holding strong above the $2,00 mark after a volatile two-week stretch marked by heavy resistance and indecisive price action.

Heavy resistance levels are keeping Ethereum afloat in the mid-$2,500 range after a volatile two-week stretch.

What Happened: Ethereum bulls have defended key support levels with the GIANT STEP strategy, aiming to maintain a bullish structure despite persistent selling pressure at major resistance levels.

The crypto is currently trading at $2,539, showing resilience as it attempts to hold above the 200-day EMA, currently at $2,440.71. This support level is pivotal for bulls to defend, as a breach could open the door for a deeper retracement.

Above this level, the 200-day SMA is providing strong resistance at $2,701.31, highlighting the importance of this price zone in the coming days. A decisive move above this level could trigger a sustained rally, paving the, way for Ethereum to test the next psychological barrier at $3,000.

"Pretty messy on the chart with ETH, like BTC and total mcap, ranging for the past 2 weeks.

Not really planning to do much until we at least convincingly break out of this local range," said top crypto analyst Daan in a recent X, formerly Twitter, post.

The defined range extends from $2,100, which acted as a key support level earlier this month, to $2,800, a major resistance level that has stalled recent attempts at a breakout.

Why It Matters: Ethereum's price has been particularly volatile over the past two weeks, with the crypto bouncing up and down rapidly, especially on Sunday, when it soared as high as $2,550 before retracing just as quickly to touch the $2,400 zone.

This volatility underscores the current uncertainty in the market, where traders are remaining cautious despite signs of strength in the crypto market.

Sunday's pullback also adds weight to analyst warnings that Ethereum could face some short-term selling pressure before confirming the next leg of the uptrend.

While many are bullish on ETH's medium-term trajectory, they note that momentum has cooled and the market is pausing to reassess.

"We've seen a decent bounce at $2,000, but it seems like the bulls are struggling to push through the $2,800 barrier. If we do break and hold above $2,800, we could see a continuation towards the $3,000 level," a Benzinga report noted.

"A move above $3,000 could set the stage for a broader altseason, as several major altcoins have stalled in recent weeks, awaiting a spark for the next phase of the bull market."

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This article is part of Benzinga's ongoing coverage of the cryptocurrency markets.

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