Summary
⚈ The recent rally pushed ETH past $2,400 after a 10-week bear market, driven by the Pectra upgrade and $400M in short liquidations.
⚈ However, overbought RSI levels and continued ETF outflows suggest caution despite recent gains.
With Ethereum (ETH) stunning the cryptocurrency markets with weekly gains of over 30%, veteran trader Peter Brandt has highlighted that the asset could be setting up for another upward price move.
Brandt’s analysis pointed to a multi-year congestion pattern, suggesting a potential “moon shot” as an ascending triangle forms. This pattern, which often signals an upward move when resolved to the upside, was highlighted in his X post on May 9.
Supporting this bullish outlook, the long-term trend features an ascending trendline connecting the 2020 bottom to the recent 2025 low, indicating sustained upward momentum.
This trendline offers the much-needed support, reinforcing the bullish case for Ethereum, especially as it trades above the critical $2,150 resistance level, a key breakout zone.
The trading expert’s projection also identified the $1,728 support zone as a key foundation, indicating strong buying interest during multiple corrections.
Moreover, technical indicators are aligning in favor of the bulls. In this case, the 8-period and 18-period moving averages (MA) are converging, potentially setting up a bullish crossover if momentum continues to build.
Meanwhile, the Average Directional Index (ADX) remains weak but could strengthen if ETH clears the overhead resistance near $2,150.
Ethereum’s key levels to watch
It’s worth noting that after sustained losses, Ethereum has reclaimed its position near the top of the cryptocurrency market, outperforming Bitcoin and pushing past the $2,400 mark for the first time in over three months. This rally began on May 8 and ended a 10-week bear market that had driven ETH as low as $1,385 in early April.
This sharp move triggered over $400 million in liquidations of ETH short positions, catching many whales and market makers off guard.
Analysts attribute this surge to the successful rollout of Ethereum’s Pectra upgrade, a major technical improvement focused on network scalability and usability.
However, despite this price jump, U.S. spot Ether ETFs experienced a third consecutive day of net outflows, shedding $16 million on May 8. This suggests that the rally is driven more by on-chain fundamentals and broader macro tailwinds than institutional inflows.
Ethereum price analysis
As of press time, Ethereum is trading at $2,467, up over 6% in the last 24 hours, and has gained more than 35% on the weekly chart.
The asset remains above its 50-day simple moving average of $1,823 but below the 200-day SMA of $2,559, reflecting a mixed technical setup. Most importantly, Ethereum’s 14-day relative strength index (RSI) is signalling a possible correction ahead at 81.
Despite this, market sentiment remains Neutral, with the Fear & Greed Index at 70 (Greed), pointing to a positive momentum that could fuel further gains.
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