- Ethereum maintains strong bullish momentum after breaking past key resistance at $2,500
- Overbought RSI suggests short-term pullback as ETH approaches $2,800 resistance
- Support at $2,100 remains critical for Ethereum to sustain its upward trajectory
Ethereum’s price surged sharply over the past week, driven by renewed market optimism and increased trading volume. After dipping below $1,800 in late April, the asset gained over 38% in just seven days.
As of May 12, Ethereum is trading at $2,514.74, with a 24-hour volume exceeding $22.5 billion. While today’s price dipped slightly by 0.16%, analysts suggest this could be a minor pause in a broader uptrend.
Strong Momentum Lifts Ethereum Beyond April’s Consolidation
Ethereum recently cleared a critical resistance zone that kept the asset trapped for weeks. Prices remained stagnant below $2,100 in April, with bulls struggling to break out.
However, the breakout above $2,500 in early May has changed the momentum significantly. This rally signals growing investor confidence and could mark the beginning of a stronger upward leg.
Moreover, Ethereum’s recovery was supported by a clear structure. The $1,800 region acted as a firm base, preventing deeper declines.
Once that level held, accumulation followed, leading to a breakout above $2,000 and then $2,100. These levels are now expected to serve as strong support in case of a pullback. Hence, the trend remains favorable as long as ETH stays above $2,100.
Key Indicators Flash Warning Signs Despite Uptrend
While the current trend looks strong, several indicators suggest caution in the near term. The Relative Strength Index (RSI) has reached 79.76, which is considered overbought. This suggests Ethereum may experience a temporary cooldown or sideways consolidation before another push higher.
Additionally, the MACD remains firmly bullish. The MACD line is well above the signal line, and green histogram bars are growing. These signals confirm that momentum remains on the bulls’ side, but traders should monitor closely for any divergence.
Next Resistance Levels to Watch May 13
If Ethereum continues upward, the next resistance is near $2,800. This level marked a local high back in January and could slow down further gains. A break above $2,800 would open the door to $3,000, a key psychological and historical barrier. Beyond that, $3,600 to $3,700 remains the ultimate target if bullish momentum continues.
