Peter Smith
Ethereum has captured the crypto market's attention once again. After a strong rally that pushed ETH from around $2,250 to nearly $5,000, the asset pulled back roughly 20%. Rather than showing weakness, this pullback appears to be a normal retracement within a bigger uptrend.
Ethereum's Recent Price Movement
As trader Trader Ethem pointed out, "there's no problem with ETH." The charts back this up, showing solid support holding and a clear setup for Ethereum to potentially break out again.
The ETH/USDT daily charts reveal three distinct phases. First, a major surge carried ETH from $2,250 to highs around $4,600–$5,000, marking a significant bullish wave. This was followed by a typical 20% correction that brought prices back toward the $2,500 zone. Most importantly, buyers defended the $2,400–$2,500 area, preventing deeper losses and keeping ETH inside its long-term upward channel.
- Support Zone: $2,400–$2,500 is the critical floor for bulls to maintain momentum
- Resistance: $4,106 stands as the main barrier to overcome
- Upside Targets: Breaking above $4,100 could open the door to $5,200–$6,000
- Downside Risk: Losing $2,400 might trigger a retest of $2,000–$2,200
Why the Bullish Case Remains Intact
Multiple factors continue supporting Ethereum's long-term prospects. ETH powers the leading ecosystem for DeFi, NFTs, and Web3 development, driving consistent demand. The staking mechanism locks up supply, creating natural upward pressure on price. Institutions increasingly view ETH as the premier altcoin alongside Bitcoin. And technically, the price action looks more like consolidation than breakdown, suggesting underlying strength.
Ethereum's climb to nearly $5,000 followed by a controlled 20% pullback shows resilience rather than weakness. With firm support around $2,500 and resistance near $4,100, ETH is approaching a crucial decision point.
If bulls push back above $4,100, Ethereum could well make another run at $5,000 — and potentially target $6,000 in the coming months.
Peter Smith
