After a strong rally that pushed Ethereum to a local high of $2,730, the asset has retraced over 10%, now testing key support levels as the market cools off. The correction comes after days of heavy buying pressure and growing expectations of a broader altseason. However, the recent pullback has sparked debate among analysts and traders, with sentiment now split between those anticipating another leg up and others preparing for a deeper correction.
Some believe this pause is healthy and necessary before Ethereum resumes its uptrend. Others argue that ETH could retest lower zones, especially if Bitcoin remains range-bound. Top analyst Daan weighed in by highlighting the ETH/BTC pair, pointing out that Ethereum, after its big move up, is now facing resistance around the 0.026 BTC level.
With Ethereum still trading far below its all-time high and caught in a wide macro range, the coming days may prove decisive. Whether this is just a short-term cooldown or the start of a larger correction, Ethereum’s current levels will likely dictate the momentum heading into the next phase of the market.
Ethereum Holds Critical Support As ETH/BTC Pair Faces Key Resistance
Ethereum continues to show resilience despite recent volatility, maintaining its position above the $2,400 level. This zone now acts as crucial support, and bulls must defend it to preserve the broader bullish momentum. While price action has cooled slightly following its sharp run to $2,730, ETH remains one of the stronger performers in the market, holding up well amid increased uncertainty and speculative positioning.
Much of the current optimism hinges on Ethereum’s performance relative to Bitcoin. If ETH continues to outperform BTC, analysts believe it could trigger the long-awaited altseason — a market phase where altcoins significantly outperform Bitcoin. Daan shared insights on this dynamic, focusing on the ETH/BTC ratio, which has gained notable strength in recent sessions.
According to Daan, ETH has now run into resistance near the 0.026 level after a sharp rally. For bullish momentum to continue, ETH must hold above 0.0224. A break below this key support could trigger a slow bleed and potentially unwind the entire recent move. On the upside, a clear break above 0.026 would open the door to a move toward 0.03 and beyond.
In short, Ethereum’s short-term direction will likely be shaped by its ability to hold $2,400 and maintain strength against Bitcoin. If both conditions are met, the case for a sustained altcoin rally grows significantly stronger.
ETH Pulls Back Into Support After Failing To Break $2,700
Ethereum is currently trading at $2,485, following a sharp retracement from its recent local high near $2,730. The chart shows that ETH failed to hold above the 200-day simple moving average (SMA) at $2,701, which acted as a strong resistance zone. After days of sustained upward momentum, this rejection has pushed the price back toward the 200-day exponential moving average (EMA) around $2,438 — a key level that now serves as immediate support.
Volume has remained elevated during this move, suggesting active participation from both bulls and bears. Despite the rejection from the 200 SMA, Ethereum is still holding well above its breakout zone from early May, where the price surged from under $2,000. If bulls can defend the EMA and keep price above $2,400, this could form a higher low and set the stage for another attempt at reclaiming the $2,700–$2,800 area.
However, if ETH loses the $2,400 level, momentum could shift in favor of the bears, potentially triggering a larger correction. For now, Ethereum remains in a consolidation phase within a broader bullish structure. The next few daily closes will be critical to confirm if the pullback is healthy or a signal of deeper weakness.
Featured image from Dall-E, chart from TradingView
