Ethereum Price Analysis: After a 35% Rally, Is ETH Ready for Another Leg Higher?

Ethereum’s sharp breakout has significantly improved its market structure, with strong momentum carrying the price toward the $2.5K region. While bullish continuation remains possible, the increasingly extended move leaves ETH vulnerable to a temporary pullback or sideways consolidation if supply begins to increase.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, Ethereum has decisively broken out of its prolonged bearish structure. The impulsive rally from the $1.85K-$1.92K demand zone pushed the price through the descending trendline, the major moving averages, and the $2.07K-$2.15K resistance zone with considerable strength.

ETH is now trading around $2.5K and testing the major $2.4K-$2.5K resistance zone. Momentum remains firmly bullish, supporting the possibility of continuation if buyers can absorb the available supply around this area.

However, the RSI has recently entered overbought territory following the vertical advance. This does not necessarily signal an immediate reversal, but it does indicate that the market is becoming increasingly extended. If supply increases around $2.5K, ETH could enter a period of sideways consolidation or begin a corrective pullback before attempting another leg higher.

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