- ETH consolidates in an ascending triangle, facing strong resistance at $2,720.
- A breakout above $2,720 may trigger a move toward the $3,000–$3,600 range.
- Failure to hold the ascending support trendline could invalidate the bullish outlook
Ethereum (ETH) has entered a consolidation pattern below a significant resistance point, followed by a visible bullish signal on the 12-hour chart. According to analysts, the market is forming an ascending triangle and this generally indicates that prices might continue to rise if confirmed. Still, prices need to exceed $2,720 for the rally to be regarded as sustainable.
Ethereum Faces Resistance at $2,720 Despite Uptrend Support
The 12-hour chart displays an ascending trendline supporting a series of higher lows, while horizontal resistance around $2,720 has capped multiple rally attempts. This structure indicates buying pressure is gradually intensifying. Yet, Ethereum has repeatedly failed to breach this overhead resistance, causing some caution among market participants.
Currently, ETH is valued at $2,607.30 which is 2.95% lower than it was 24 hours ago. A brief surge to $2,723 was met by sellers, resulting in a drop in the token. The decrease in volume is visible, since a 24-hour trading volume of $24.41 billion is lower than the previous day’s volume by 5.55%.
Resistance and Support Levels
The primary resistance to watch remains firmly set at $2,720. A confirmed break and close above this level could trigger increased buying activity and set the stage for a move toward the $3,000–$3,600 range in the coming weeks. On the downside, the trendline currently acts as a support floor, and a breakdown below this ascending line may invalidate the bullish setup.
Despite the bearish pressure, the broader chart structure still favors buyers, provided key levels hold. The ascending triangle has been forming since early May, and its resolution may define Ethereum’s direction for the first half of June.
Market Context and Supply Overview
Ethereum’s market cap is approximately $318.61 billion, with a circulating supply of 120.72 million ETH. Unlike some other cryptocurrencies, Ethereum does not feature a finite maximum supply, thus creating intense debates regarding inflation and tokenomics in the future.
The asset is still the second-largest digital currency in terms of value, but the current market has been very unpredictable for all cryptocurrencies. Ethereum still occupies a significant position with a 17% share in the digital asset market.
Outlook Hinges on Breakout Confirmation
While market sentiment is cautiously optimistic, technical confirmation is essential. Traders and analysts alike are watching closely for a breakout above $2,720. If this occurs with strong volume, Ethereum could initiate a mid-term rally potentially targeting the $3,600 mark. Until then, price action is likely to remain range-bound within the current triangle formation.
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