Ethereum (ETH) Price Prediction: Will the World's Second-Largest Cryptocurrency Continue Its Upward Trend?

Ethereum has found solid footing after testing support levels near $2,463. The world's second-largest cryptocurrency is showing renewed strength as it builds on recent gains.

Ethereum (ETH) price tested the critical support zone at $2,463, finding buyers and bouncing back up in recent trading.

The world’s second-largest cryptocurrency is showing renewed strength as it builds on recent gains and attempts to break above the $2,500-$2,720 trading range.

After Bitcoin’s price action saw the apex cryptocurrency set a new all-time high, ETH initially tested the $2,720 zone and experienced a correction that brought it below $2,500.

The cryptocurrency found a low at $2,463, which coincides with the 0.382% Fibonacci retracement level of the recent high to low move, and began climbing again.

ETH successfully moved above the $2,500 resistance level and broke through the 23.6% Fibonacci retracement level from its recent high to low move, offering encouragement to bulls.

Technical analysis shows Ethereum trading above $2,520 and the 100-hourly Simple Moving Average. The price also broke above a connecting bearish trend line with resistance at $2,540.

Key Resistance Levels Ahead

The next major hurdle sits at the $2,600 level. This corresponds to the 50% Fibonacci retracement level of the downward move from $2,729 to $2,463.

Additional resistance zones appear at $2,630 and $2,650. These levels are defined by Fibnocci retracement levels and confluence with the Bollinger Bands.

A clear break above $2,650 could send ETH toward the $2,720 resistance level, which is crucial for bulls to overcome.

This zone is closely followed by the 38.2% Fibonacci retracement level and coincides with a key psychological price point.

Technical analysis suggests that breaking above $2,720 would likely be followed by a strong buying spree, setting the stage for further gains.

In such a scenario, Ethereum could target the $2,800 resistance zone or even $2,850, which is defined by Fibnocci retracement levels.

However, on-chain data reveals potential challenges ahead as highlighted by Glassnode analysis.

There is a cluster of investor cost basis levels around $2,800, indicating that many holders who bought at these levels have been underwater for months.

As ETH approaches this zone, there could be selling pressure from investors looking to exit at break-even prices.

Futures Market Sentiment Shifts

Recent data reveals that futures market sentiment appears to be shifting. The Taker Buy-Sell Ratio has dropped sharply over a 14-day moving average period.

This metric typically measures whether aggressive market participants, known as "takers," are engaging in more buying or selling activity.

The declining ratio suggests that sellers are gaining a slight upper hand in the derivatives market.

Spot market activity over a 24-hour period shows selling pressure. Recent data indicates that 113,100 ETH was sold compared to 90,000 ETH bought.

Large holder activity reveals mixed behavior. The Large Holder Netflow metric turned negative at -12,700 ETH, indicating that whales were selling more than they bought.

However, ETH remains above key moving averages on the daily chart, maintaining its position above both 50-day and 100-day moving averages.

This technical indicator supports the longer-term upward trend,suggesting that buyers are still in control over longer time periods.

The Relative Strength Index sits at approximately 63.9, remaining in bullish territory without being overbought.

Bollinger Bands have begun to tighten following earlier expansion, suggesting that volatility may be decreasing.

Two potential scenarios could unfold from current levels. A decisive break above the $2,800 resistance could trigger a swift rally toward $3,000 and beyond.

Alternatively, if sellers defend the $2,720 zone and manage to push the price lower, the next support level appears at $2,520.

The SEC’s decision on Ethereum ETF staking is due by June 1st. Institutional demand through yield-bearing ETFs could provide strong support for higher prices.