- Ethereum rebounds to $2,608 after sharp drop, forming a strong V-shaped recovery
- Price remains range-bound between $2,447 support and $2,630 resistance
- Traders eye breakout above $2,630 as momentum builds despite low trading volume
Ethereum (ETH) is gaining new attention from traders, with several recent market moves fueling a more bullish outlook despite some earlier choppy price action. At the time of writing, ETH traded at $2,608.76, up 2.63% on the day, according to CoinMarketCap data.
This climb followed a dip below $2,450 during the previous trading session, and the nature of this recovery is one key reason for the growing optimism.
ETH’s V-Shaped Recovery Above $2,600: A Key Bullish Signal for Traders
The rebound began as a V-shaped reversal, starting late on May 20. This quick turnaround raised ETH’s price by over $180 in under 24 hours. Such a sharp recovery off a low often signals to traders that buying interest remains strong at certain levels.
While the surge showed strength in reclaiming prices, it’s worth noting that trading volume for Ethereum actually declined by nearly 20% to $21.86 billion during this period. This particular detail suggests that reduced selling pressure, more so than a powerful wave of new buying, might have been a primary factor behind the upward move. Still, for many traders, the ability to bounce back so decisively is a positive sign in itself.
Related: Ethereum Whales Add 1.4 Million ETH as Price Breaks Major Resistance, Nears $3,000
Range-Bound Ethereum: Why Consolidation Breeds Bullish Breakout Hopes
Despite this recent recovery, Ethereum currently remains stuck within a clear trading range, another factor that paradoxically contributes to some traders’ bullish anticipation. Technical data from Coinbase’s 4-hour chart, for example, shows ETH holding support near $2,447 while it meets resistance at around $2,630.
ETH repeatedly tested both these levels recently without a clean breakout. This price action formed a compressed structure of lower highs and higher lows – a pattern that often precedes a significant directional move. A break out of such a range can be a strong bullish confirmation.
Market analyst Daan noted that Ethereum’s price action mirrors that of Bitcoin and the wider crypto market, which remain locked in tight ranges. According to him, the current structure limits momentum across altcoins, including Ethereum, until a definitive breakout occurs.
Traders Watch Resistance at $2,630 and Beyond
Earlier in May, Ethereum bulls took control by pushing the price above $2,200, forming a bullish structure for the first time in several weeks. That rally continued through $2,550 but reversed, sending ETH back toward $2,400.
Now, with ETH trading above $2,600 again, major resistance sits just ahead. A larger resistance zone is visible between $2,814 and $2,851 presenting the next possible target. A break above $2,630 would likely prompt a move into that range. On the other hand, failure to hold above $2,447 could lead to a retest of long-term support between $2,070 and $2,168.
Ethereum Market Cap Rises; Liquidity Remains Moderate
Ethereum’s market cap rose to $314.94 billion with its latest price gains. Its circulating supply remains unchanged at 120.72 million. This supply figure, according to some analysts, contributes to what they term the devalued nature of the asset under its current token model.
Related: Ethereum (ETH) Shows “Golden Cross”; Analysts See $3,000 Price Target
The volume-to-market cap ratio for ETH stands at 6.99%, a figure reflecting moderate liquidity in the market at present.
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