Ethereum Price’s Climb Above $2,500 Requires Crossing This “Red Circle”
Ethereum needs to break the key resistance at $2,393, the prior rejection point, to target a move above $2,500.Summary
Ethereum (ETH) is currently trading around $2,187, recovering within a rising channel after a pullback from a March high near $2,393. Two key on-chain signals present a mixed outlook for bulls aiming for $2,500. Record exchange outflows suggest accumulation as holders move ETH off exchanges, reducing immediate sell supply. However, the Network Value to Transactions (NVT) Signal is flashing caution, indicating that ETH's market cap is growing faster than its underlying on-chain transaction volume, suggesting overvaluation relative to fundamental usage.
Technically, ETH is trading between Fibonacci levels, supported by the rising 20-day EMA. The critical hurdle is the "red circle" resistance zone at $2,393, which corresponds to the 78.6% Fibonacci retracement and the prior rejection point from mid-March. A 12-hour close above $2,393 is necessary to open the path toward $2,494 and potentially $2,605. The bullish structure remains intact as long as the price stays above the lower boundary of the rising channel, near $2,023.
(Source：BeInCrypto)