Ethereum at Crossroads: Analyst Sees Bullish Setup, Flags $2,550 Breakout and $2,300 Support
In a fresh technical analysis, Harish Vatnani, Head of Trade at ZebPay, has outlined the current state of Ethereum (ETH), which he describes as bullish on the daily chart despite being in a consolidation phase. The analysis comes as ETH trades near $2,485, close to the upper end of its recent range after a sharp rally in August.
According to Vatnani, ETH formed a major bottom around $1,550-$1,600 before recovering strongly and reclaiming the $1,850-$1,900 resistance zone. The subsequent breakout in August was accompanied by a significant volume expansion, with prices moving rapidly from approximately $1,900 to the $2,500-$2,550 region. Following that upward move, ETH has entered a sideways consolidation between roughly $2,300 and $2,550.
This consolidation is occurring near the upper end of the recent rally and can still be interpreted as a bullish continuation structure, provided ETH maintains key support levels. The daily chart shows a 'pole' from $1,850-$1,900 to $2,550, followed by a narrowing price range between $2,300 and $2,550. Volume, which surged during the breakout, has since declined during the consolidation—a development that is generally considered constructive in a bullish setup.
For traders, the immediate focus is the $2,550-$2,600 zone, which Vatnani identifies as the most important resistance area for the next major directional move. He outlines a bullish scenario where ETH holds above $2,300-$2,350 and produces a decisive daily breakout above $2,550-$2,600, preferably on increasing volume. Such a breakout could open the path toward $2,700, $2,800, and eventually $3,000. From a broader measured-move perspective, the consolidation suggests a potential extension to around $3,050-$3,250, although additional resistance is likely along the way.
Conversely, the setup would weaken if ETH loses the $2,300-$2,350 zone on a sustained daily closing basis. A breakdown below $2,300 could lead to a deeper correction toward $2,100-$2,150. If that support also fails, the next major level is around $1,850-$1,900. A sustained break below $1,850 would significantly undermine the medium-term bullish structure and might expose the $1,550-$1,600 region again.
Vatnani maintains that the daily chart remains bullish but is in a state of consolidation after a meaningful impulsive advance. The reduced volume during the pullback is a positive sign, but the next big move requires confirmation. He advises watching the $2,550-$2,600 area closely: a strong daily close above it with volume could trigger a run toward $2,800-$3,000, and possibly $3,100-$3,250. On the other hand, a sustained close below $2,300-$2,350 would raise the probability of a correction toward $2,100-$2,150.
As with any technical analysis, these levels are not guarantees, and market conditions can change quickly. This report is for informational purposes only and should not be considered as investment advice. Cryptocurrency markets are highly volatile; readers are urged to conduct their own research before making any investment decisions.
