Ethereum surged nearly 40 percent last week, climbing from $1,808 on May 8 to $2,600 by May 10. The rally was supported by renewed risk appetite and a key network upgrade that attracted fresh investor attention.
Pectra, as the last update, went live on May 7 and brought significant improvements to the functionality of Ethereum. It advanced staking limits and improved the usability of wallets after the previous year’s Dencun upgrade.
Ethereum could not sustain the upward trend even after it moved above the $2,500 mark after the initial momentum. On May 13, the price declined to 2407, reflecting the increasing selling pressure and profit-taking positions.
On-chain analytics platform Glassnode reported that the price went up fast from $1,800 to $2,500 because of low availability. However, there was a tight supply zone around $2,580, in which 1.3 million ETH were placed.
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1 Million ETH Sell Wall Emerges as Key Resistance Level for Bulls
Glassnode noted that the $2,580 level became a central resistance point, triggering a sell-off as Ethereum approached it. As prices neared this threshold, the supply at that zone declined to one million ETH, showing that many holders exited at break-even levels.
The sudden increase in selling activity kept Ethereum below $2,580, even as bulls attempted to extend the rally. At press time, Ethereum was trading around $2,497, posting a 2.14 percent decline over the past 24 hours.
The bigger crypto market reflected weakness, with more than $606 million in liquidations. This further undermined Ethereum’s momentum, with traders exiting the market to book profits arising from the recent bull run.
Sellers are pushing for a breakout below $2,435 to incur further losses. If this support is broken, Ethereum may decline to $2,320. A rejection from that region can spark another bullish push to break through the resistance level.
Source: Tradingview
As long as the price is higher than $2,580, the next targets will be $2,850 and a possible run to $3,000. On the downside, a breakdown below $2,320 can take Ethereum down to test support at $2,110.
Ethereum’s sharp rally met strong resistance at $2,580, where heavy selling emerged from large holders. With bulls and bears in a standoff, Ethereum’s next move depends on whether it can break resistance or hold critical support levels.
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