Ethereum traded about $2,500 after failing to recover its $2,700 level in a week. Despite being rejected, market sentiment remains cautiously optimistic, with many analysts viewing the recent pullback as part of a healthy integration phase. After weeks of volatility, ETH appears to be stable above the critical support level, which has the potential to lay the foundation for a stronger breakthrough in the coming weeks.
Top analyst TED Pillow shares a technical outlook that suggests Ethereum may form a reverse head and shoulder pattern on the 12-hour chart, a classic bullish reversal signal. According to the pillow, this structure could serve as a springboard for ETH retesting and could potentially exceed the $2,700 level.
Currently, ETH’s ability to have a $2,500 area is a positive signal as the Bulls want to defend the main support and build momentum. If the mode is confirmed, the next leg is higher and may expand quickly. However, if the current level is not maintained, new sales pressure may be caused. As the market awaits further confirmation, Ethereum’s technical settings continue to attract the attention of traders who are following the next move.
Ethereum needs to lead to confirmation of Altseason
While many analysts continue to call for the upcoming season, most agree on a key requirement: Ethereum must recouple above $3,000 to lead the fee. As the second largest cryptocurrency with market capitalization, ETH has historically been the gateway to the wider Altcoin rally. Without its participation, the likelihood of full-scale seasons remains low.
Currently, Ethereum is trading close to $2,500, which consolidated after a failure to break the $2,700 resistance zone earlier this week. Despite this rejection, optimism is still high. Analysts like Ted Pillows believe ETH is just laying the foundation for a bigger breakthrough. The pillow highlights the reversal head and shoulder pattern developed on the 12-hour chart in his latest analysis, an established bullish structure, usually before the trend reversal.
According to Pillows, a breakout for the neckline of over $2,700 will be a strong technical confirmation, which could trigger a quick transfer of $3,000. “If ETH closes above $2,700 with momentum, it will soon reach $3,000,” he noted.
Many also believe that Ethereum’s explosive move may not be long after Bitcoin pushes its impulse beyond its all-time high. Once BTC cools down, capital may spin into ETH and large mountain top coins, exacerbating the brand new legs.
Price action details: key levels to watch
Ethereum is currently trading at $2,512 on the 4-hour chart after failing to break through the $2,700 resistance earlier this week. The chart shows that the merger of ETH is between $2,470 and $2,700, forming the right shoulder that appears to be developing a reverse head and shoulder pattern, a potential bullish reversal setting that traders are paying close attention to.
34 EMA (Green) is priced at $2,557, and ETH is now trading below its margins, marking a short-term weakness. However, the $2,511 100 SMA (Purple) is offering immediate support, and the Bulls will need to defend that level to avoid a deeper correction to the 200 SMA, which is currently close to $2,156.
In the recent pullback, the number has declined, indicating that sales pressure may be losing steam. The settings are still valid as long as the ETH sells for more than $2,470 and the failure below the mode neckline is avoided. A confirmation breakout above $2,700 could trigger a quick move towards psychological $3,000.
The next few meetings are crucial. Ethereum needs to recoup 34 EMA and gain momentum of over $2,600 to confirm the strength. Otherwise, failure to hold support may delay expected breakthroughs and hopes for stall season.
Featured images from DALL-E, charts from TradingView
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