Ethereum Stages a Comeback—But Can It Hold?
After dipping below $2,200 earlier this week, Ethereum has clawed its way back up, trading around $2,485 as of today. The rebound looks solid—enough to make you wonder if the worst is over. But there’s a catch. ETH is now bumping against a stubborn resistance zone between $2,500 and $2,600, an area that’s knocked prices down multiple times before.
The recovery started with a sharp bounce from the $2,200–$2,240 range, which had been acting as a sort of floor. By June 25, the daily chart showed a bullish engulfing candle—a classic reversal signal—followed by a push above the 50-day moving average. That’s a decent shift in momentum, especially since ETH managed to close above $2,470, a level that’s mattered before.
Why the Sudden Jump?
Part of the reason seems to be a surge in spot demand. On June 26, net inflows hit over $53 million, the highest in weeks. That lines up with what the charts are showing: ETH isn’t just drifting higher—it’s reclaiming key levels. The 4-hour chart, for instance, shows a clean break above $2,480 after several failed attempts.
But here’s the thing. Ethereum’s now testing that $2,500–$2,560 zone again, and history hasn’t been kind here. Three times in June, this area sent prices tumbling. If it breaks this time—with solid volume—the next targets could be $2,637 and even $2,746.
Mixed Signals Ahead
Some indicators are leaning bullish. The True Strength Index (TSI) on the daily chart is curling up from deeply oversold territory, hinting at a possible trend reversal. And the 4-hour Keltner Channels are widening, which usually means momentum is building.
But it’s not all green flags. That $2,560 level has been a graveyard for rallies, and without strong buying pressure, it could happen again. For now, as long as ETH stays above $2,420, the short-term outlook isn’t terrible. A close above $2,500 would be a good sign, but if it gets rejected, we might see another slide toward $2,300.
So yeah, there’s some optimism—but also plenty of reasons to stay cautious. The next day or two could be telling.
