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Why ETH/USD Surpassed $2,600: Market Outlook Based on Moving Averages and Momentum Indicators

Why ETH/USD Surpassed $2,600: Market Outlook Based on Moving Averages and Momentum Indicators

ETH/USD Technical Analysis: Reclaims the $2,600 Level – Is the Uptrend Genuine?

Overview

As of May 22, 2025, ETH/USD (Ethereum/US Dollar) is trading around $2,613, having recovered the psychological threshold of $2,600. A rebound from the previous day’s sharp drop has been confirmed, and upward momentum is strengthening again. In this article, we analyze short-term price movements using the moving averages, ADX, and MACD indicators to forecast upcoming scenarios.

  Source: cTrader platform

Relationship Between MA50/MA200 and Price Action

The 50-hour moving average (blue line) has turned upward following the recent surge and is acting as support near $2,570. Meanwhile, the 200-hour moving average (red line) remains stable around $2,450, indicating a long-term uptrend. Since the current price is above both moving averages, technical analysis suggests bullish dominance.

ADX: Measuring Trend Strength

The ADX remains high around the 60 level, indicating a very strong trend. Directional indicators (+DI and -DI) confirm that buyers are in control. This level provides confidence in trend continuity, supporting a buy-on-dips strategy in the short term.

MACD: Momentum Turning Point

The MACD line (yellow) has crossed above the signal line (red) from below, forming a "golden cross." The histogram is also expanding in the positive zone, confirming strengthening momentum. This is considered a strong buy entry signal.

Support and Resistance Zones for Trade Planning

Level Price Description
First Resistance $2,630 Recent high. A breakout above here could lead to further gains.
Second Resistance $2,700 Psychological threshold. Key level for bullish breakout.
Short-Term Support $2,570 50-hour MA. Reference for buy-on-dips strategy.
Main Support $2,450 200-hour MA. A break below may signal bearish reversal.

Outlook and Trade Scenarios

  • Bullish Scenario: If the current price clearly breaks above $2,630, the next target becomes $2,700, supporting a trend-following long position.
  • Bearish Scenario: If the price dips below $2,570, a short-term pullback or correction may occur, suggesting a wait-and-see approach or short trades.

Conclusion

ETH/USD currently maintains a bullish technical structure, supported by the MACD golden cross and elevated ADX. The moving averages are also supporting the price, suggesting room for further gains. However, a move below $2,570 could indicate a temporary correction. Going forward, the key break levels to watch are $2,630 and $2,570.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice. All investment decisions should be made at your own discretion. For other currency pairs and the latest technical analyses, please visit the FIXIO Blog.

This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
 

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DANIEL JOHN GRADY
Author

Daniel John Grady is a financial analyst and writer. He is a former CFO with a degree in Financial Management and has been published in both English and Spanish. With over ten years of equities trading experience, he is primarily interested in foreign exchange and emerging markets with a focus on Latin America.

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