Key Insights:
- The inverse H&S on Ethereum pointed to $3,000 once prices clear the $2,700 resistance.
- Stochastic RSI signals an upward move as ETH consolidates above $2,600.
- On-chain data showed sell pressure around $2,800, but momentum remains strong.
Ethereum price is currently building momentum by consolidating below major resistance. ETH price is currently trading around $2,539, and analysts are closely monitoring a breakout above the $2,700 mark. Notably, many factors suggest a rally toward $3,000 if the price breaks above this level
Ethereum Inverse Head and Shoulders Suggests Rally
According to Analyst Ted, an inverse head-and-shoulders pattern formed on Ethereum’s 12-hour price chart. When this pattern appears, it means the market’s view is starting to become more optimistic.
The neckline of the formation aligns closely with the $2,700 resistance, which ETH price has tested several times. A close above the zone could push the market up quickly.
Based on what Ted saw before with similar patterns, he believes a move toward $3,000 will happen once the neckline is broken. Typically, the pattern appears after a downtrend and signals that the price is getting ready to rise.
With the increased strength of the right shoulder, there is a stronger chance of a bullish outcome.
Stochastic RSI data from TraderPA supported this thesis. Daily stochastic RSI on the Ethereum chart points to the current oversold state. The oscillator has climbed above its previous low and is indicating upward. Historically, after such RSI resets during periods of consolidation, the market has often continued to rise.
Resistance at $2,800 May Trigger Temporary Pressure
Even though technical signals pointed upward, on-chain trends point to areas where there may be resistance. According to Glassnode, investor cost bases are most concentrated in the range of $2,800. A large number of early investors entered the market through this region. As a top altcoin is about to enter this zone, some traders could choose to lighten their positions, sometimes as a result of previous losses.
However, this could increase short-term selling, hindering the momentum in the market. The supply is mainly concentrated above $2,750, reaching its highest density close to $2,820.
This pattern shows that high activity in the market can help prices break through weak resistance and rise.
Despite this, the broader context remained constructive. Since May, ETH price has bounced off its lows and stayed within major trendlines.
Both MACD and RSI on the daily chart show that the market is still seeing an uptrend. The MACD histogram bars are becoming greener, and the MACD line is now above the signal line, proving the market is strengthening.
Analysts Eye Key Targets Beyond $2,800
Should Ethereum price clear the $2,700–$2,800 resistance band, analysts have outlined subsequent targets. Ted believes that the psychological level of $3,000 is the key next step. Since early 2024, this has not happened again, making it important for both the bulls and the bears.
TraderPA considered the price area between $2,550 and $2,700 to be a holding stage for the next action. He emphasized that as long as ETH price holds above $2,500, the structure remains intact.
The continued rise of lower prices supports buyers, and the market is still trading well above the 50-day moving average.
Additionally, volume trends show accumulation. On-chain data from the last week shows that the number of ETH addresses with more than 10,000 ETH has increased.
They often lead significant changes in the market and respond before major price shifts happen. Their continued interest supports the ongoing accumulation phase.
The Bollinger Bands on the daily timeframe are tightening. This setup often precedes a volatile breakout. When ETH reaches the upper limit of its range and slows down, breakout traders may enjoy better opportunities.
Ethereum Price $3,000 Target Depends on Breakout
For Ethereum price to continue rising toward $3,000, major volume must appear after it breaks $2,700. A cluster of on-chain buy prices at $2,800 could be the final push for momentum to surge. Should the volume rise above this point, bulls might start guiding the trend.
Meanwhile, at press time, Ethereum price traded at around $2,5356, down 0.76% over the past 24 hours. Rising demand and technical signals indicate the market is starting to attract investors again. While the market matures, investors are closely watching the $2,700–$2,800 area.