Ethereum consolidates above $2,500 as rare on-chain signal hints at major rally

Ethereum is consolidating above the key psychological level of $2,500, facing a significant resistance zone between $2,760 and $2,800. Technical analysis from Daan Crypto highlights this price barrier as crucial, with a breakout potentially triggering a rally toward the $4,000 mark, the peak of the current bull market.

Despite recent intraday volatility, including a dip to around $2,499, Ethereum's monthly gains of 43.22% underscore a bullish trend. The altcoin's total market capitalization stands at $311.69 billion, maintaining its position as the second-largest cryptocurrency.

On-chain data reveals significant inflows of Ethereum to centralized exchanges, notably 385,000 ETH to Binance, suggesting institutional investors may be adjusting positions. However, a rare on-chain signal, previously seen in December 2023 before ETH surged from $2,200 to $4,000, has reappeared. Market analyst Darkfost interprets this as a powerful indicator that large investors have re-entered the market, potentially setting the stage for a major rally.

"It's an all-in-one signal, and today, it's flashing something rare and powerful," Darkfost said.

Exponential Moving Averages (EMAs) for 20, 50, 100, and 200 periods currently support the bullish outlook, with the 20 EMA at $2,553.6 and the 200 EMA at $2,378.7. The support zone around $2,327.7 may provide a floor for buyers, while the resistance near $2,800 remains a critical hurdle.

Overall, Ethereum's price action and on-chain metrics suggest that if it holds above support, a significant upward move could be imminent, potentially reclaiming higher price levels in the coming months.

Ethereum trades above $2,500 amid a rare on-chain signal suggesting a major rally. Despite recent volatility and resistance near $2,800, large investor activity and bullish technical indicators hint at potential gains toward $4,000, echoing a similar pattern from late 2023.