Ethereum (ETH) is now testing the $2,500 zone after a rally of about 35%. Momentum remains clearly bullish, but overbought signals increase the likelihood of a consolidation phase, or even a technical pullback.
Key points:
Ethereum has returned to the resistance zone of $2,400–$2,500 after breaking a long-term bearish structure.
A clean break above $2,510 would pave the way for a new upside leg, while $2,220–$2,310 is the first notable pullback zone.
The overbought signals and the presence of liquidity on both sides of the price could lead to a volatile consolidation before the next directional move.
Ethereum resistance test
The rally started from the $1,850–$1,920 demand zone, taking out along the way a bearish trendline, several major moving averages, and the $2,070–$2,150 resistance zone, according to an analysis published on August 27 by CryptoPotato.
ETH is now trading near $2,500, where the $2,400–$2,500 range stands out as the next major resistance zone. Buyers are still in control, but they need to absorb the available supply around these levels to extend the move.
The daily Relative Strength Index (RSI) has entered overbought territory after the sharp rise. This does not necessarily mean a confirmed reversal, but it reflects an extended rally that could give way to a sideways phase or a correction if selling pressure increases.
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Risks to ETH’s momentum
On the 4-hour chart, Ethereum is consolidating in the $2,430–$2,510 resistance band after an almost vertical climb from around $1,900. According to Shayan Markets, a clean breakout with acceptance above $2,510 would confirm buyer dominance and open up additional upside potential. At this stage, the broader trend remains bullish.
However, a pullback remains entirely plausible after this acceleration. The first significant support zone lies between $2,220 and $2,310, followed by a stronger support around $2,070–$2,120. Liquidation data also shows a concentration of liquidity both above and below Ethereum’s current price, meaning neither side—bulls or bears—has full control.
The current setup follows a move of roughly 35% from Ethereum’s recent base around $1,900, built after holding the broad consolidation zone of $1,850–$1,920.
This move invalidated the previous bearish structure and allowed the $2,070–$2,150 zone to be reclaimed. The old consolidation zone remains the key structural support in case the latest breakout fails and a deeper correction occurs.
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