Ethereum’s Rally Faces Critical resistance at $2,800
Ethereum has surged over 40% in the past month, reclaiming the $2,500 mark. However, the token may face a notable challenge at $2,800.
According to Glassnode, many investors who bought at $2,800 are now at break-even. As ETH approaches this level, these investors may sell, adding pressure to the market.
ShayanMarkets, a Santiment contributor, noted a drop in Ethereum’s Taker Buy-sell ratio. This suggests that the futures market is leaning more toward selling. If this trend continues, it could lead to a correction.
Technically, ETH is still on an uptrend. It trades above key moving averages, indicating a healthy longer-term trend. However, the Bollinger bands are tightening, suggesting easing volatility. The moving average convergence divergence has also shown a bearish crossover, which may signal waning momentum.
Two scenarios could unfold. If ETH breaks $2,800, it could move toward $3,000, especially with the SEC’s decision on Ethereum ETFs due by June 1. However, if selling pressure builds, ETH might correct and bounce back to $2,200 before any new rally.
Ethereum’s upward trend is still intact, but caution is advised as it approaches the $2,800 resistance.
