Date: Fri, May 30, 2025 | 05:20 AM GMT
The cryptocurrency market witnessed a sharp pullback over the past few hours, sending major tokens into the red. Bitcoin (BTC) briefly dipped to a low of $104,684, while Ethereum (ETH) touched $2,564 before finding support and rebounding. This drop triggered heavy liquidations, wiping out over $485.66 million in positions — with $453.53 million coming from long trades alone.
Despite the sell-off, Ethereum has reclaimed the critical $2,600 level and is currently trading around $2,637, showing signs of stability and potentially setting the stage for a new bullish phase.
Source: Coinmarketcap
Ascending Triangle Support Holds
Zooming in on the 4-hour chart, ETH appears to be trading within a classic ascending triangle — a bullish continuation pattern commonly seen during uptrends. This pattern features higher lows converging toward a flat horizontal resistance, gradually building pressure for a breakout.
Earlier on Thursday, ETH attempted a breakout above the resistance zone between $2,713 and $2,737, but the move turned out to be a fakeout as the price quickly reversed, sending ETH down to test support at $2,560. However, this area coincides with both the ascending trendline and the 100-period moving average, which successfully acted as a cushion and prevented further downside.
Ethereum (ETH) 4H Chart/Coinsprobe (Source: Tradingview)
The price has since rebounded strongly and is now trading above both the ascending support line and the 100-period MA, indicating renewed strength.
Bounce Back for Altcoins?
With ETH bouncing off strong technical support, traders are eyeing the possibility of another breakout attempt. If bulls can push the price above the $2,713–$2,737 resistance zone and confirm the move with a clean retest, the next technical target lies near $3,125 — representing a 19% upside from current levels.
Such a breakout could have broader implications across the market. Historically, when ETH leads a move higher, altcoins tend to follow, often delivering even larger percentage gains. A confirmed breakout from this ascending triangle could act as a market-wide trigger for a broader altcoin rally.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
