Can Ethereum Bulls Regain Control If ETH Sustains $2.5K?

• Ethereum recovers to $2,500 after dropping to $2,100, with $2,750 as the next resistance level.
• Justin Sun, founder of TRON, reportedly bought 16,236 ETH using 37 million USDT.

Following a sharp dip to the $2,100 zone on Monday, Ethereum (ETH) has climbed back to test the $2,500 barrier. This recovery raises questions about the Ethereum market trend, with a target at the $2,750 level before possibly resuming a bearish trend.

On Monday, ETH’s price plummeted more than 23% but has since rebounded, currently testing a $2,500 zone and potentially resuming its bearish trend. Still, the technical indicator suggests a loss of positive momentum, nearing overbought conditions, which may lead to a bearish reversal if the $2,600 resistance remains unbroken. Key support levels are observed at $2,650 and $2,500, which could come into play if the bearish trend resumes.

The market’s attention has also shifted to Justin Sun, founder of the TRON blockchain after reports surfaced of a suspicious address linked to him purchasing 16,236 ETH with 37 million USDT while Ethereum’s price fell to $2,112.

The address, created shortly before the purchase, withdrew $36 million (14,884 ETH) from Binance, accumulating 392,474 ETH since February at an estimated cost of $1.19 billion, now valued at $995 million. Sun has denied rumors of liquidation despite ETH trading below his average buying price of $3,051.

Ethereum’s Price Recovery and Current Technical Outlook

Ethereum’s price dipped below the $2,200 support, briefly touching the $2,000 mark before bulls managed to drive it back up. The recovery pushed the price above the 61.8% Fibonacci retracement level, rising to $2,530 from a low of $2,100.

Currently, Ethereum is trading around $2,503, marking a 10.84% increase in the past 24 hours, with a daily trading volume of $46 billion, according to CoinMarketCap. On the hourly chart, ETH/USD is still below the $2,650 mark and the 21-day simple moving average. Immediate resistance is seen at $2,550, with significant hurdles at $2,680 and $2,750. A breakout above $2,750 could propel the price towards $2,850 and potentially higher towards $3,250 in the near term.

If Ethereum fails to surpass the $2,550 resistance, another decline could be imminent. Initial support lies near $2,350, with major support at $2,225. A drop below $2,225 could push the price back towards $2,100 and potentially lower, testing the $2,000 support level again.

Today’s trading range is expected to be between $2,350 support and $2,700 resistance.