Ethereum (ETH) has attracted new attention from traders, with some recent market movements driving a more bullish outlook despite previous choppy price actions. At the time of writing, ETH increased 2.63% to $2,608.76, according to data from CoinMarketCap.
This climb followed a fall below $2,450 during previous trading sessions, and the nature of this recovery is one of the key reasons for the growth of optimism.
sauce: coinmarketcap
Over $2,600 ETH V-shaped recovery: Important bullish signals for traders
The rebound began late on May 20th and began as a V-shaped inversion. In many cases, showing a low recovery to traders indicates that buying interest remains strong at certain levels.
Surge showed strength in retrieving prices, but it is worth noting that Ethereum trading volume actually fell by nearly 20% to $21.86 billion during this period. This particular detail suggests that lower sales pressures may be a major factor behind the upward movement than a strong wave of new purchases. Still, for many traders, the ability to bounce off so decisively is a positive in itself.
Related: Ethereum whales add 1.4 million ETH as prices break the big resistance, close to $3,000
Ethereum bound by scope: Why integration creates hope for a bullish breakout
Despite this recent recovery, Ethereum is currently stuck within clear trading range. For example, technical data from Coinbase’s 4-hour chart shows that it meets nearly $2,447 ETH retention support at $2,630.
ETH has recently repeatedly tested both of these levels without a clean breakout. This price action formed a compression structure with lower highs and higher lows. This is a pattern that often precedes a movement of a critical direction. Escape from this range can be a strong bullish confirmation.
Market analyst Darn pointed out that Ethereum’s price action reflects the price action of Bitcoin and the broader crypto market, and remains trapped in close range. According to him, the current structure limits the momentum of the entire altcoin, including Ethereum, until a critical breakout occurs.
$ETH Pretty nasty price action last 2 weeks.
It marked several levels of the chart that caught my interest. Currently, the range is bound, just like BTC, and Crypto’s total market capitalization.
I don’t want to do it much, at least until I get a compelling break out of this local area.
High time frame support & pic.twitter.com/97yhfaazgh
– Daan Crypto Trades (@daancrypto) May 20, 2025
Traders are looking at resistance at over $2,630
At the beginning of May, the Ethereum Bulls took control by pushing prices above $2,200, forming a bullish structure for the first time in weeks. That rally lasted until $2,550, but it turned around and put the ETH back to $2,400.
Currently, ETH trading is over $2,600 again, so there is a huge resistance right ahead. Between $2,814 and $2,851, a larger zone of resistance appears, indicating the next possible target: A break above $2,630 could encourage a transition into that range. Meanwhile, failing to exceed $2,447 could lead to a retest of long-term support between $2,070 and $2,168.
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Ethereum’s market capitalization will rise. The fluidity remains medium
Ethereum’s market capitalization has risen to $3149.4 billion due to the latest price rise. That circular supply has not changed at 12,072 million. According to some analysts, this supply figure contributes to what is called the reduced nature of assets under the current token model.
Related: Ethereum (ETH) indicates “golden cross”. Analysts will see a price target of $3,000
The cap ratio between the ETH market and market is 6.99%. This is a figure that reflects moderate liquidity in the market today.
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