TLDR
- Ethereum price found support at $2,500 and climbed above $2,600 resistance levels
- ETH rallied 60% in May, reaching a peak of $2,731 before consolidating around $2,675
- Long-term holders are selling positions, creating the largest offloading activity since October
- Over $3.4 billion worth of ETH left exchanges in the past month, showing accumulation behavior
- Price faces key resistance at $2,750 with potential to reach $3,000 if breakthrough occurs
Ethereum price has started a fresh upward movement after finding strong support at the $2,500 level. The cryptocurrency climbed above key resistance zones at $2,550 and $2,620 during its recent rally.
ETH bulls became active near the $2,500 support zone following Bitcoin’s move to new all-time highs. The price managed to break through the $2,600 resistance level with strength.
The rally continued with moves above $2,620 and $2,650 levels. Ethereum even spiked above $2,720, forming a high at $2,731 before beginning to consolidate gains.
Current price action shows ETH trading above $2,675 and the 100-hourly Simple Moving Average. A connecting bullish trend line has formed with support at $2,550 on the hourly chart.
The cryptocurrency completed a 60% rally during May, reaching its peak at $2,617 in some data feeds. This surge followed a wave of $3.42 billion in fresh accumulation activity.
However, the momentum appears to be slowing as price action flattens near the $2,509 level. Daily chart analysis shows volume thinning out during this consolidation phase.
The RSI indicator hovers around 67, remaining just below the overbought threshold. This level indicates continued bullish momentum while suggesting room for further upward movement.
Long-Term Holders Exit Positions
Recent data from Santiment shows the Age Consumed metric flashing red twice in recent days. These spikes represent two of the largest increases in long-term holder activity since October.
The abrupt upticks indicate seasoned investors are offloading dormant ETH positions. This activity often signals profit-taking behavior near perceived local price tops.
The magnitude of these moves marks the largest such activity in seven months. This selling pressure from experienced holders could impact ETH’s ability to maintain its current momentum.
Long-term holder conviction appears to be waning based on the selling patterns observed. If this trend continues, it may create headwinds for further price appreciation.
Exchange Outflows Show Accumulation
Despite long-term holder selling, exchange data reveals a different trend among other market participants. Over 1.34 million ETH worth more than $3.42 billion has left centralized exchanges in the past month.
This sharp decline in available exchange supply coincides with momentum from the Pectra upgrade. The outflow pattern suggests market participants are positioning for long-term holds rather than short-term trading.
The combination of exchange outflows and upgrade anticipation shows mixed investor behavior. While some holders take profits, others appear to be accumulating for longer-term positions.
On the technical side, ETH faces immediate resistance near the $2,740 level. The next key resistance sits at $2,750, which could determine the next direction for price movement.
A breakthrough above $2,800 resistance might send the price toward $2,840 and potentially $2,920 or even $3,000. Current price consolidation above the 23.6% Fibonacci retracement level supports this bullish scenario.
If Ethereum fails to clear the $2,750 resistance, initial support lies near $2,675. The first major support zone sits at $2,550, coinciding with the bullish trend line and 61.8% Fibonacci retracement level.
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