Ethereum Eyes Breakout Above $2,600, Technicals Look Strong

• Ethereum bounced back from $2,500 support, signaling a recovery like Bitcoin.
• ETH price crossed above $2,650 but selling pressure near $2,600 caused the price to retreat.

Ethereum’s price has started to bounce back after finding solid support near the $2,500 level, following a similar trend seen with Bitcoin. After holding firm at this key zone, ETH managed to climb past some important resistance points, breaking above $2,600 and $2,750 along the way. 

Looking at the details, Ethereum’s price managed to surpass the 23.6% Fibonacci retracement level of the recent downward swing from $2,463 down to about $2,730. This is a positive sign, indicating buyers are stepping in. However, the price faced some resistance close to the $2,600, where sellers came back in to slow down the gains. Because of this, Ethereum couldn’t push through the $2,600 level right away and pulled back a little, dropping closer to $2,570 at the time of writing.

On the hourly chart, there was a noticeable break below a connecting bullish trend line, which had been providing support near $2,555. This means that while the overall trend still looks hopeful, short-term momentum took a slight pause. ETH is now trading near the 100-hour Simple Moving Average, which often acts as a dynamic support.

Ethereum Shows Signs of Short-Term Uptrend

Zooming out to the 4-hour chart, the picture looks a bit more encouraging. Ethereum’s price has climbed around 1.6% recently, intraday high closing near $2,609. The pattern of higher lows and higher highs in this timeframe suggests a short-term uptrend is forming, meaning buyers are gradually gaining the upper hand. The price bounced strongly off the $2,500 support zone and is now testing a critical resistance zone around $2,610.

Technical indicators add further weight to the positive outlook. The Relative Strength Index (RSI) is currently around 53, which points to neutral momentum — not overbought or oversold. This balance means there is room for Ethereum to move higher without running into immediate exhaustion.

Meanwhile, the MACD indicator is showing a bullish crossover, a classic sign that buying pressure is increasing. Additionally, Ethereum is hovering near the upper band of the Bollinger Bands, which often hints at a potential breakout if momentum continues.

In fact, Ethereum’s Bollinger Bandwidth (BBPT) is signaling a likely upside breakout from the current consolidation phase. If ETH can close above the upper Bollinger Band with good trading volume, it could trigger a rally pushing the price toward the next target zones between $2,650 and $2,700.

Analysts point $2,610 as the next key targets. A decisive move above this with strong volume would be a big green light for bulls aiming for higher gains. On the other hand, if Ethereum fails to maintain support at $2,500, the price could slide back toward the next significant support near $2,420, which would be a key area for buyers to defend.

With momentum building and technical indicators aligning, Ethereum is showing encouraging signs of bouncing back after a recent dip. But the road ahead depends on how it handles critical resistance levels. For now, it seems like the bulls have the upper hand. All eyes remain on whether ETH can break through $2,600 and continue its upward move.