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Ethereum is holding firm above the $2,500 level after weeks of strong buying pressure and bullish momentum, despite having lost more than 60% of its value since December 2024. The asset’s resilience comes at a pivotal time: Bitcoin has officially broken its all-time high, triggering optimism that a new phase of the market cycle is beginning—one that could deliver explosive gains for altcoins.
For Ethereum to fulfill its usual leadership role in an altcoin rally, it must break above current resistance zones and confirm a recovery structure. As price action continues to develop, analysts are watching closely for signals that ETH is ready to outperform once again.
To illustrate just how deep the correction was, Sentora (formerly IntoTheBlock) shared a key metric: after Ethereum’s sharp sell-off that began in December, the share of addresses in profit plunged from over 90% to just 32% by April 2025. The rebound since then has been remarkable, but the road to a full recovery is still developing. If Ethereum can maintain support and reclaim higher levels, the stage may be set for a broader altseason that could reshape sentiment across the crypto market.
Volatility Grows: Ethereum Eyes A Breakout
Ethereum bulls have regained control after a turbulent few months, forming a bullish price structure as the asset attempts to reclaim the $2,700 level. The surge began with a clean breakout above $2,200, and despite recent volatility, Ethereum is showing signs of strength. On Sunday, ETH spiked above $2,550 before retracing to $2,400 in a sharp pullback. Since then, price action has stabilized, and with Bitcoin pushing into new all-time highs, Ethereum appears poised to follow.
Analysts now expect a potential breakout if ETH can flip $2,700 into support. Momentum is building as selling pressure fades, and buyer confidence grows. Many view this as a key inflection point: if bulls sustain their push, Ethereum could reassert leadership in a market increasingly tilted toward altcoins.
Supporting this bullish outlook is fresh on-chain data from Sentora. Following a brutal drawdown that began in December 2024, the percentage of ETH addresses in profit collapsed from over 90% to just 32% by April 2025. Since then, the recovery has been dramatic—nearly 60% of addresses are now back in profit. According to Sentora, this level of volatility hasn’t been seen since the explosive 2017 bull cycle.
If Ethereum continues this trend and breaks out of its current range, it may not only confirm a strong recovery but also spark the next major leg of altseason.
ETH Tests Critical Resistance
Ethereum is now trading at a pivotal level, having surged to $2,687 with a 5.3% daily gain. The chart shows ETH challenging its 200-day simple moving average (SMA) at $2,702, a key technical barrier that has historically acted as resistance. After multiple failed attempts to break past this level in recent weeks, today’s bullish momentum puts ETH on the verge of a potential breakout.
The bullish structure is supported by strong upward volume, signaling renewed buyer interest. Notably, the 200-day exponential moving average (EMA), currently at $2,444, has provided solid support throughout May, creating a base for this upward push. If Ethereum decisively closes above the $2,700 region, it could set the stage for a rally toward $3,000 and beyond, confirming a shift in trend after months of bearish pressure.
However, the price is still within a consolidation range, and bulls must hold above $2,600 to maintain this breakout potential. Failure to do so may result in a short-term retracement back to the $2,400–$2,450 demand zone.
Featured image from Dall-E, chart from TradingView
Sebastian’s journey into the world of crypto began four years ago, driven by a fascination with the potential of blockchain technology to revolutionize financial systems. His initial exploration focused on understanding the intricacies of various crypto projects, particularly those focused on building innovative financial solutions. Through countless hours of research and learning, Sebastian developed a deep understanding of the underlying technologies, market dynamics, and potential applications of cryptocurrencies.
To share his insights with others, Sebastian became an active contributor to online discussions on platforms like X and LinkedIn. His focus on fintech and crypto-related topics quickly established him as a trusted voice in the online crypto community. Sebastian’s goal was to educate and inform his audience about the latest trends and insights in the rapidly evolving crypto landscape.
To further enhance his expertise, Sebastian pursued a UC Berkeley Fintech: Frameworks, Applications, and Strategies certification. This rigorous program equipped him with valuable skills and knowledge regarding Financial Technology, bridging the gap between traditional finance and decentralized finance. The certification deepened his understanding of the broader financial landscape and its intersection with blockchain technology.
Sebastian’s passion for finance and writing is evident in his work. He enjoys delving into financial research, analyzing market trends, and exploring the latest developments in the crypto space. In his spare time, Sebastian can often be found immersed in charts, studying 10-K reports, or engaging in thought-provoking discussions about the future of finance.
Sebastian’s journey as a crypto pioneer has been marked by a relentless pursuit of knowledge and a dedication to sharing his insights. His ability to navigate the complex world of crypto, combined with his passion for financial research and communication, makes him a valuable contributor to the industry. As the crypto landscape continues to evolve, Sebastian remains at the forefront, providing valuable insights and helping to shape the future of this revolutionary technology.
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