Ethereum Skyrockets Past $2,500: Is Another High on the Horizon?

Ethereum has surged past $2,500 as it recovers from weekend sell-offs. Currently trading at $2,625, it saw a peak of $2,652. The rise is supported by a restructuring at the Ethereum Foundation and $321 million in recent inflows. Analysts speculate that if momentum holds, Ethereum could reach between $5,000 and $6,000 in the future.

Ethereum, the world’s second-largest cryptocurrency, reached a notable milestone as it surged past $2,500 in early trading on Tuesday. This sharp increase comes after a tumultuous weekend, where the crypto market experienced significant sell-offs leading to nearly $1 billion in liquidations. Currently, Ethereum is trading at about $2,625, following an intraday peak of $2,652 since the start of June, reflecting a 4.16% rise in the past 24 hours, as per CoinMarketCap.

In terms of gains among the top cryptocurrencies, Ethereum led the pack, closely followed by Solana, which increased by 4.4%. This uptick in ETH is attributed, in part, to the Ethereum Foundation’s recent decision to reshape its workforce, highlighting a renewed focus on protocol development amid fierce competition in the blockchain space. This has, in turn, spurred a wave of positive sentiment surrounding Ethereum.

This week marks a pivotal moment for Ethereum, with $321 million in new investments flowing into Ethereum-linked financial products. This figure represents the highest weekly inflow since December, signalling a revival in investor confidence regarding Ethereum’s potential and long-term viability.

Looking to the future, traders are keenly watching whether Ethereum can maintain this momentum. A decisive break above the daily Simple Moving Average (SMA) resistance at $2,683 could pave the way for bullish activity, possibly targeting the $2,700 mark. However, there are signs of hesitation around the $2,800 level, where prior attempts to break through have been met with rejection, suggesting that consolidation around this area may slow momentum unless ETH surpasses $2,850.

Some market analysts have pointed out that Ethereum may be mirroring the price trajectory it displayed during the 2016-2017 time frame. Should this historical pattern hold, predictions of Ethereum reaching prices between $5,000 and $6,000 are being discussed.

After a slight pullback, the current trend indicates that Ethereum is consolidating above the $2,600 mark. Key support levels have formed around $2,610 to $2,615, with buy-side pressure firmly defending the $2,600 price point. However, should bearish trends continue, analysts suggest that ETH could drop to about $2,323, a level expected to provide solid support against further declines.