Executive Summary:

• Ethereum is consolidating above $2800
• A weekly hammer candlestick pattern formed at $2817 low
• The bullish key level is the January 2024 high of $2716

Ethereum Broken Resistance Acting Like New Support

Ethereum price is trying to hold above support that has formed between $2716 and $2826.

Since early April, ether has been supported near $2800. Each time the price tests the low, a short term rally has developed.

A big reason why this low has been successfully defended is due to a previous high from January 2024.

The January 12 high was at $2716 creating a level of resistance. This high eventually broke in February. 

We know from our technical analysis studies that former resistance, when broken, becomes support in the future. This broken high is now acting like support for the second largest crypto.

Weekly Hammer Pattern Suggest Bullish Undertones

In early May, a weekly hammer candlestick pattern developed. The hammer is a bullish pattern and suggests the technical support levels are being respected.

Ethereum is now trying to rally off the trend line created by the recent lows. So long as prices hold above $2716, then consider ether in a bull trend.

If ether can’t hold above the $2716 key level, then a more significant top may have formed.