Ethereum at Crucial $2,700 Test as Market Sentiment Turns Bullish

Ethereum remains at a pivotal point, targeting the $2,700 resistance level. Recent gains over 55% since May reflect a surge in investor confidence and market strength, particularly following Bitcoin’s new all-time high. Glassnode data indicates bullish fundamentals, with ETH needing to surpass $2,700-$2,900 to maintain momentum in the altcoin space.

Ethereum is currently at a critical point, inching closer to the $2,700 threshold. This level is seen as a crucial resistance that bulls must overcome if they’re looking to solidify a bullish trend. The excitement builds as Bitcoin recently surpassed its all-time high, igniting speculation that altcoins, including Ethereum, could see substantial gains in this new market phase. Investors are eagerly watching to see if Ethereum can sustain momentum and develop further upside from here.

Since the beginning of May, the price of ETH has climbed more than 55%. This rise is buoyed by a resurgence in investor confidence and the overall strength in the market, alongside an observable shift where capital is moving from Bitcoin into large-cap altcoins. The sentiment in the crypto environment appears to be shifting, with Ethereum potentially leading the charge in altcoin-season sentiment.

Insights from Glassnode indicate some encouraging fundamentals backing this movement. In May, Ethereum reclaimed its Realized Price at $1,900, pulling the average investor back into profitability after an extended period of losses. Additionally, it’s notable that the price is now above its True Market Mean at $2,400, a historical signal often associated with bullish trends. Yet, to really confirm this bullish trajectory, gaining traction above $2,700 will be crucial to attracting more momentum-driven investments.

With investors optimistically gearing up for a rally, Ethereum is taking the lead as it re-establishes itself following a time of high volatility. After recovering and stabilising above the $2,200 price point, ETH’s price movements have clearly leaned bullish, constructing higher lows and forming a critical resistance area near the $2,700 mark.

Currently, the bulls appear to be firmly in control, with Ethereum becoming a litmus test for the broader altcoin market. The recent bullish breakout of Bitcoin successfully sets the stage for a potential influx of capital into notable altcoins, including ETH. However, to substantiate this bullish continuation, it’s necessary for Ethereum to convincingly break the $2,700–$2,900 region.

Further analysis from Glassnode shows additional bullish indicators. Ethereum’s upward progress, surpassing the Realized Price at $1,900, signals positive investor sentiment and potential for renewed confidence in purchases. The price exceeding the True Market Mean at $2,400 aligns with prior behaviours during accumulation phases, making this an exciting time.

Nevertheless, Ethereum faces its most significant obstacle at the Active Realized Price close to $2,900. Clearing this hurdle would signal a major structural change and would likely indicate that newer buyers are confident and sticking around. Up until this point, Ethereum shows strong potential, and the upcoming sessions will be vital for determining if it’s ready to spearhead the next upward movement for the altcoin market.

At the moment, Ethereum continues to inch higher, currently consolidating near $2,665 after a brief surge past $2,734. The daily chart reflects a distinct upward trend in ETH’s price since early May, underpinned by higher lows and robust buying activity. All principal moving averages show upward slopes, indicative of a bullish structure.

The immediate technical focus rests on the 200-day Simple Moving Average (SMA), positioned at around $2,703. Historically, this level has been a significant point of resistance, and a daily close above it could set off a breakout and affirm a continuation of the bullish trend, potentially opening the path to the $2,900–$3,000 territory.

Recent upticks in volume on bullish candles point to rising demand, but the challenge of the $2,700 area could trigger some short-term profit-taking. Should a pullback happen, support levels may be tested around $2,445 (100 SMA) and $2,080 (the nearby True Market Mean), which could provide a buffer for ETH.

Featured image from Dall-E, chart from TradingView.