Ethereum holds support for $2,500 – Historical signal $4,000 as potential target

Ethereum is at a critical level as tensions escalate in the Middle East after a new conflict between Israel and Iran. Despite rising global uncertainty, ETH still showed resilience, firmly holding the $2,500 support zone. The Bulls are still in control at the moment, but selling pressure is intensifying as the bears try to push the price below the current range. Market sentiment is cautiously optimistic, and investors are paying close attention to any signs of collapse or breakthrough.

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Top analyst Rekt Capital recently shared a technical analysis that highlights the ability of Ethereum despite its recent drop of $2,500 as a support level. Historically, this price level has become a strong foundation for gatherings to $4,000, including major initiatives in August 2021 and early 2024. If ETH can continue to defend this area, it may indicate that the Bulls are ready to build momentum on new legs, which may trigger a wider Altcoin power.

However, with the rise in geopolitical risks and the increase in volatility of risky assets, Ethereum is facing a real test of its strength. If this level is reached, it could mark the beginning of Ethereum’s next major move. Will history repeat itself or should it be corrected further?

Ethereum is under pressure, but maintains key support zones

Ethereum has fallen by more than 14% since Wednesday, sparking widespread fear and uncertainty among traders and long-term holders. Just a few days ago, sentiment was overwhelmingly bullish, with many investors expecting ETH above the $3,000 level and confirming a wider Altcoin rally.

However, geopolitical instability undermines market momentum. On Thursday, news of Israel’s attack on Iran and subsequent retaliation caused a shock wave in global markets, triggering a sharp risky reaction and causing volatility between cryptocurrency assets.

Despite the heavy sales pressure, Ethereum still shows elasticity. Rekt Capital shared a technical failure, pointing out that ETH continues to use the $2500 level as a key support. This is not the first time ETH has used $2,500 as a launch pad – the historical mode has shown from August 2021 and early 2024 that maintaining this level has led to a rally trend towards $4,000. According to Rekt, Ethereum must continue to show stability around the region to avoid a deeper return and maintain bullish momentum.

Over the past five weeks, ETH has successfully defended the $2,500 region, forming a solid support base despite repeated testing. Whether Ethereum can hold this foundation again may define the direction of altcoins and set the tone for the broader crypto market in the coming weeks.

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ETH remains supportive after rejection range highs

Ethereum is trading at $2,556 as the $2,830 price declined sharply earlier this week. As can be seen from the daily chart, ETH is still locked in a multi-week range of about $2,500 to $2,830. Despite recent volatility driven by geopolitical tensions, Ethereum has managed to surpass the 50-day and 100-day moving averages, both of which are currently tilting upward, which is a positive signal of momentum.

The red 200-day moving average is located around $2,642, acting as a solid barrier to resistance. ETH briefly exceeded this level but failed to close with force above it, resulting in an answer. During these recent meetings, the number has soared, reflecting the growing interest and emotional price response in the Israel-Iran conflict.

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The key area to watch is the $2,500-$2,520 support area. This range has been applied to the ground floor several times and can be used as a launch pad if the bull resumes control. Instead, a clean break below $2,500 may divert bearish sentiment and open the way to $2,300.

Featured images from DALL-E, charts from TradingView