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Ethereum, the second-largest cryptocurrency by market cap, extended its climb past $2,500 in the early Tuesday session as the crypto market recovered from a sell-off that resulted in nearly $1 billion in liquidations over the weekend and on Monday.
Ethereum reached an intraday high of $2,652 in a steady climb since June 1 before easing to $2,625, where it currently trades, up 4.16% in the last 24 hours, according to CoinMarketCap data.
Aside from Solana, which rose 4.4%, ETH topped gains among the top 10 cryptocurrencies by market capitalization, as the Ethereum Foundation restructured its workforce to focus on protocol development in a competitive and crowded network scene, boosting optimistic sentiment for the crypto asset.
ETH is one of the best-performing major tokens this week, thanks to $321 million in new inflows into Ethereum-linked financial products. This is the highest weekly inflow since December, indicating increased investor confidence in Ethereum's long-term worth.
What's next?
If Ethereum's price sustains its current rebound and decisively breaks above the daily SMA 200 resistance at $2,683, it might boost bullish momentum to reach the next target above $2,700.
Repeated rejections and long upper wicks near the $2,800 level suggest hesitation around here. While overall strength remains intact, momentum is capped unless ETH convincingly breaks above $2,850. In this scenario, Ethereum may reach 3,000.
According to analysts, Ethereum might be following its 2016-2017 fractal and might rise to $5,000-$6,000 if the pattern holds.
Following a minor pullback, current market activity shows consolidation above $2,600. Support is formed between $2,610 and $2,615, with bulls defending the $2,600 mark. In the event of further selling, ETH might fall to $2,323, which is anticipated to serve as strong support.
Vladislav Sopov
U.Today Editorial Team