TLDR
- Ethereum price is consolidating between $2,400-$2,680 range after hitting three-month high of $2,879
- The $2,800 level serves as crucial resistance that has rejected ETH four times in the past month
- Analysts see price compression patterns that typically precede major moves up or down
- If ETH breaks above $2,800 convincingly, target moves to cycle highs around $4,000
- Failure to hold current range could send price down to $2,100 support level
Ethereum is showing signs of an impending major price move as the cryptocurrency compresses between key levels. The second-largest crypto by market cap is currently trading around $2,640, up 3.7% in the daily timeframe.
The digital asset recently attempted to reclaim the $2,800 barrier, reaching a three-month high of $2,879 last week. However, market turbulence related to the Iran-Israel conflict caused a pullback before ETH recovered over the weekend.
Since early May, Ethereum has been trading within a $2,400-$2,680 range. This followed a recovery that saw the cryptocurrency surge from $1,800 toward its current price levels for the first time in three months.
Market analyst Daan Crypto Trades points out that ETH has faced rejection from the local range resistance four times in the past month. The price action shows compression just below the critical $2,800 area.
$ETH Price action is compressing right below this big $2.8K level.
If we’d see a convincing break above $2.8K and hold there, that would be a good setup for a move to the cycle highs around ~$4K.
If we do lose this current range then $2.1K is the big high timeframe level to… pic.twitter.com/y0opUZqUQJ
— Daan Crypto Trades (@DaanCrypto) June 16, 2025
This $2,800 level has served as a key support and resistance zone throughout the cycle since 2024. The trader considers this area “the most important level on this entire chart by far.” Every major retest of this zone has resulted in either a bounce or a decline.
Key Price Levels to Watch
The current price range is becoming increasingly tight for the duration ETH has been trading here. This compression often signals that a large move is approaching within the next few weeks.
If Ethereum achieves a convincing break above $2,800 and holds there, it would set up a potential move to cycle highs around $4,000. This represents the bullish scenario that many traders are watching for.
On the downside, if ETH loses its current range, the $2,100 area becomes the major high timeframe level to monitor. This would represent a downside target if the compression resolves to the downside.
Historical Patterns Point to Potential Surge
Analyst Merlijn The Trader highlights that Ethereum is consolidating within its current range after breaking out of a multi-month falling wedge pattern. This technical setup historically suggests a massive move could be coming.
THIS IS WHERE SMART MONEY BUILDS.$ETH broke out of a multi-month wedge.
History shows: this pause often precedes a surge.RSI is retesting breakout zone.
Don’t sleep on this structure. pic.twitter.com/l27PWSsiLT— Merlijn The Trader (@MerlijnTrader) June 16, 2025
The trader notes that such pauses often precede surges in price. The Relative Strength Index (RSI) is also retesting the recent breakout zone, adding to the technical picture.
Merlijn draws comparisons to Ethereum’s 2016-2017 pattern, noting similar structure to eight years ago. During that period, ETH had an explosive setup that led to a massive rally starting in 2017.
After a market shakeout in 2017, Ethereum moved sideways within a tight range while reclaiming the 50-day Moving Average. Following this key reclaim, the cryptocurrency experienced a surge toward new highs.
The analyst believes the current setup mirrors that period, with the same breakout zone and 50-day MA reclaim pattern. However, this time there is institutional backing and a larger market cap supporting ETH.
Price compression patterns typically indicate that an asset is about to experience increased volatility. Ethereum currently sits trapped between two critical levels that will determine its next direction.
The cryptocurrency has been trending sideways with increasing selling pressure on higher timeframes. Today’s session shows ETH holders remain hopeful for further gains as the market rebounds.
Over the past week, Ethereum shows 4.3% returns, marking the best performance on this timeframe among the largest cryptocurrencies.
The current consolidation phase represents a critical juncture for Ethereum’s price trajectory. The resolution of this compression will likely determine whether ETH moves toward $4,000 or retreats to $2,100 support levels.
As of the latest data, Ethereum continues trading at $2,640 with a 3.7% daily increase.
