Ethereum Nears Key Resistance as Rally Gains Momentum

Ethereum (ETH) extended its recovery on May 28, climbing nearly 2.9% to $2,636 after rebounding from a recent low of $2,500 on May 23. The rally has brought ETH close to the crucial 200-day Simple Moving Average (SMA) at $2,699—a long-standing resistance level the asset has struggled to surpass since May 13.

Market analysts and traders are watching this resistance point closely. A decisive move above the 200-day SMA could signal bullish momentum and potentially drive ETH toward the $3,000 mark. However, on-chain data from Glassnode suggests possible selling pressure near $2,800, as many investors may seek to exit positions at breakeven following earlier declines.

Despite this, Ethereum's performance in May remains largely positive. The cryptocurrency rose above $1,900 earlier in the month, pushing most holders into profit territory. It is currently trading above its true market mean of $2,400, a key indicator that reflects an overall healthy trend in market sentiment.

For ETH to solidify its bullish outlook, a breakout above $2,900 is considered critical. Such a move would boost investor confidence and indicate stronger upward momentum, possibly attracting more institutional and retail interest.

With Ethereum approaching significant technical and psychological levels, the next few trading sessions will be crucial. Traders will be focused on whether ETH can overcome resistance and maintain upward momentum, or if profit-taking near $2,800 will stall its rally. As volatility remains high, staying above key support levels like $2,400 could help sustain optimism in the Ethereum market.