Ethereum’s 4% surge on massive volume confirmed $2,600 as strong support, completing a bullish higher-low pattern. The rally occurred in three distinct phases: initial accumulation, explosive upside on institutional buying, and sustained upward pressure from retail FOMO. This structure indicates organic demand rather than speculative pumps.
Momentum indicators show the RSI breaking above 60 while maintaining upward trajectory, suggesting room for further gains. Options market data reveals increased call buying at $2,700 strikes, with open interest concentrated in bullish positions. The $2,530 level now serves as critical support, protected by high-volume nodes on volume profile charts.
Network fundamentals strengthen the technical case, with Ethereum’s burn rate hitting new highs and staking participation increasing. Analysts note that breaking $2,650 could trigger short covering from leveraged traders, potentially creating a liquidity cascade toward $2,800. The alignment of technicals and on-chain metrics creates a favorable risk-reward ratio for bulls.
