Ethereum ( ETH ) price analysis: Breakthrough of the key resistance level at $2500! 7.5% daily rise ignites bullish sentiment.

On Wednesday, the price of Ethereum soared over 7% from the day's low, reaching the $2550 mark, successfully breaking through the key resistance level. The "king of altcoins" rebounded strongly from the $2380 support level, climbing all the way up to the $2585 area, setting a two-week high.

Key resistance strong breakthrough

Since breaking through in early May, ETH has mainly been consolidating in the range of $2400 to $2800. However, after losing the $2550 support level two weeks ago, it briefly fell below this range. Since then, although ETH has recovered its losses, it has been stopped by the resistance level at $2500, oscillating between the lower edge of this range and the resistance level for nearly a week. Today, with the overall market rebounding (Bitcoin rising to $109,600), investor bullish sentiment has significantly increased.

Analyst's View: Key Support Must Be Maintained Regarding today's trend, analyst Daan Crypto Trades stated that ETH has shown a "beautiful local range breakout." However, he emphasized that bulls must hold the 2520 dollar area to confirm that this is not "another false breakout or liquidity trap within a larger volatile range." If this level is lost, ETH is likely to retest the range low. Therefore, the current key support level is at 2310 dollars, and the resistance level is at 2735 dollars.

Market observer Merlijn The Trader pointed out that Ethereum "has been able to hold its support every time", forming "one of the cleanest breakout patterns we have seen." He emphasized the analysis of a rising triangle pattern in the ETH chart that has lasted for three months, pointing out that the price successfully rebounded from the ascending support line after a recent false breakout, with the target pointing to the key resistance level near $2700.

"Ethereum is gaining momentum. Higher lows, solid foundation, bullish MACD cross. If it can break through $2700 cleanly... ETH will soar. $3000 is just the starting point; the real market movement will be after that."

Will history repeat itself? ETH may replicate the previous peak path Merlijn also asserts that ETH's current two-year cycle pattern is repeating, which may indicate that a significant breakout is about to occur. His chart analysis shows that since 2018, the price of Ethereum has roughly been operating in phases of two years:

1. Bottoming Phase: Price forms a base.
2. Pullback Phase: The price retraces and re-tests the bottom low points.
3. Takeoff Stage: The price breaks through and reaches a new all-time high.

In the last launch phase (2020-2022), ETH soared from around $100 to an all-time high (ATH) of $4878. Merlijn believes: "This time we start from $1500. This is not a pullback, but rather a launch pad."

Coincidentally, analyst Kaleo also pointed out that this cycle is structurally highly similar to the previous cycle. He recalled that in December 2020, when Bitcoin set its then historical high, Ethereum was still down 60% from its previous cycle peak, and many investors even thought it was "dead." However, ETH then skyrocketed over 800%, far exceeding Bitcoin's 250% increase during the same period.

In this cycle, ETH's maximum drawdown from its historical peak was 68%, while Bitcoin has already reached a new high first. Kaleo summarized: "If history repeats itself, then ETH's bottom has been established. From here, it will only go up."

As of the time of writing, the trading price of Ethereum is 2568 USD, with a weekly increase of 6.1%.

(Source: NewsBTC)