Ethereum has stabilized near the $2,300 area, with a fresh bullish moving average crossover and an intact ascending channel pattern fueling expectations for a potential move toward the $2,600 resistance zone. The second-largest cryptocurrency traded around $2,308 on Tuesday, recovering from recent lows near $2,250, as technical structure improves despite lingering market volatility following a hotter-than-expected U.S. CPI report. Traders increasingly view the inflation data as largely priced in, limiting downside momentum across major crypto assets.
Short-term correction and key support levels
Ethereum remains in a corrective phase after briefly dipping below Friday’s swing low during CPI-driven turbulence. The 1-hour chart shows price slipping below a short-term support before stabilizing, with MCO Global noting on X that ETH has not yet confirmed a local low. The next key support sits at the $2,220 swing low, which now serves as the main level for the short-term structure. As long as ETH holds above that mark, the pullback can be interpreted as a B-wave correction, potentially setting up a C-wave higher if buyers defend support and reclaim nearby ranges. However, the month-long sideways consolidation raises the risk of a more complex correction before a decisive directional move emerges.
Weekly pattern echoes past rally setups
On the weekly chart, Ethereum is displaying a consolidation pattern that resembles previous zones before major upside moves. A TradingView chart shared by analyst Moe highlights four similar areas where ETH moved sideways after a recovery phase—each of the first three preceded sharp rallies. The latest blue circle near the current range shows Ethereum consolidating after rebounding from its recent low, with the chart projecting a possible move toward higher price zones if the pattern repeats. The setup does not yet confirm a breakout, and stronger follow-through above the consolidation range is needed to match earlier bullish runs.
Ascending channel and SMA crossover
The daily chart reveals Ethereum trading within a well-defined ascending channel that has held since late March, consistently printing higher lows along a rising support trendline. Importantly, the 20-day simple moving average has crossed above the 50-day SMA for the first time in months, a bullish signal often associated with strengthening short- to medium-term momentum. ETH remains above both moving averages, while the 100-day SMA near $2,145 reinforces the broader bullish structure. The 200-day SMA, located around $2,640, aligns with the upper boundary of the channel and acts as a major overhead resistance.
Whale accumulation and institutional sentiment
On-chain data shows that Ethereum whale wallets, excluding exchanges, increased their holdings by approximately 360,000 ETH during the recent correction, rising from 124.69 million ETH to 125.05 million ETH. Although Bitmine has reportedly slowed its accumulation after reaching 86% of its long-term target, institutional sentiment remains relatively constructive. Fundstrat’s Tom Lee recently argued that "Crypto Spring has commenced," pointing to cautious investor sentiment even as crypto assets gradually recover from earlier lows.
Key levels to watch
A decisive close above the $2,400 resistance zone could open the door for a rally toward the $2,600–$2,650 area, where the 200-day SMA converges with the upper channel line. On the downside, failure to hold the ascending channel support near $2,200 would weaken the bullish structure and potentially expose Ethereum to a deeper correction toward the $2,000 psychological level.
