[Breaking News] ETH/USD Nears $2,600 – Is This the Start of a Real Rebound?

ETH/USD Analysis – Pauses Just Before $2,600, Watching the Rebound Trend

Overview (May 20, 2025)

ETH/USD is currently trading around $2,576, continuing its strong rebound from the previous day's low near $2,360. As it approaches the psychological level of $2,600, several bullish technical signals have emerged, raising expectations for further upside. However, the $2,600–$2,620 zone is also a historically significant resistance area where previous rallies have failed, suggesting possible short-term selling pressure.

This analysis uses major technical indicators such as moving averages, ADX, DMI, and volume to closely examine the future direction of ETH/USD.

Key Point 1: Moving Averages Indicate Formation of a Rebound Trend

ETH/USD has rebounded without clearly breaking below the 200-hour moving average (red line), forming a near “double bottom” pattern on the chart. The 50-hour moving average (blue line) has also turned upward from a flat trend, signaling a potential short-term trend reversal.

Especially notable is that recent candlesticks have broken clearly above the 50MA. This increases the likelihood that the 50MA will act as support, providing a basis for short-term long entries. If the price breaks above the $2,600 range, there is also the potential for a golden cross between the 50MA and 200MA, raising expectations for a medium-term uptrend.

Key Point 2: ADX and DMI Suggest Trend Acceleration

Looking at the indicators at the bottom of the chart, the ADX (yellow line) has started rising from its bottom and is currently near 0. If the ADX exceeds 0.20, it is considered a "clear trend formation," indicating we may be in the early phase of such a move.

In addition, the +DI (green line) of the DMI is clearly above the -DI (red line), showing that buying pressure is stronger than selling pressure. This supports the view that the current price rise may be a genuine trend rather than just a temporary rebound.

Key Point 3: Rising Volume and Strong Buying Momentum

During the recent rally, volume has slightly increased compared to the previous day, indicating real demand behind the price rise. Especially when ETH/USD moved from the $2,400s to above $2,500, volume also rose, confirming strong buying momentum from a technical standpoint.

This alignment of price increase and volume growth reinforces the credibility of the trend and supports the scenario of continued upside. Whether volume continues to rise will be a key factor in sustaining a bullish strategy.

※Image source: cTrader platform

Outlook and Trade Strategy

ETH/USD may diverge in direction based on the following technical levels:

• Break above $2,600 resistance: A clear breakout could lead to the next target of $2,640–$2,680.
• 50MA and 200MA crossover: A crossover would likely signal the start of a medium-term uptrend.
• ADX surpasses 0.20: This would confirm a trend and improve the reliability of long positions.

Trade Scenarios

Bullish Scenario (Trend-Following Long)
Entry: Long position after confirmed breakout above $2,600
Target: $2,640–$2,680
Stop Loss: Below $2,550 (recent low)

Bearish Scenario (Short-Term Reversal Play)
Entry: Short position after bearish candlestick forms near $2,600
Target: $2,500–$2,480
Stop Loss: Exit if price exceeds $2,610

Conclusion:

ETH/USD has started a short-term rebound from $2,360 and is now approaching the $2,600 level. With technical factors such as moving average support, ADX recovery, DMI buy signals, and rising volume aligning, the possibility of continued upside in the short to medium term is increasing.

However, since the $2,600 range has historically served as a sell zone, close attention must be paid to candlestick behavior and volume changes at this level. While a trend-following long position is the basic approach, risk-managed position building is essential.

Disclaimer:

This article is for informational purposes only and does not constitute a recommendation to buy or sell any specific financial instrument. All trading decisions are your own responsibility.
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