Ethereum Faces Key Test at $2,500 Resistance Level

Ethereum is holding firm near the $2,500 mark after a significant recovery from its recent lows. The price has successfully reclaimed key support levels at $2,100, and the shift in moving averages suggests the broader trend is improving. For now, the asset remains in a consolidation phase while it faces heavy selling pressure in the $2,400 to $2,500 zone.

Technical indicators show some indecision. The daily RSI has retreated from overbought territory, signaling that the market might need a cooling period before it can mount another rally. On the four hour chart, Ethereum is trading sideways between $2,350 and $2,550. A push above the upper bound could signal more gains, but a dip below $2,400 might trigger a deeper correction toward the $2,250 support level.

On the supply side, the data remains interesting. Exchange reserves have dropped steadily over the last few months, falling to around 14.9 million coins. This suggests that fewer tokens are sitting on exchanges waiting to be sold, which can often help reduce selling pressure during a price climb. While this is a positive sign for the market structure, traders should monitor demand carefully to see if this trend holds.

Looking ahead, $2,500 is the main hurdle for buyers. If the price can stay above this level, the path opens up toward the next major resistance area near $3,300. Until then, expect choppy movement as the market searches for its next direction.