Ethereum is attempting to extend its latest recovery after rebounding sharply from its 24-hour low. ETH traded near $2,524 on Sept. 4 after climbing almost 6%, but the cryptocurrency is once again approaching the important $2,550 resistance zone that has rejected several previous breakout attempts.
The recovery has improved Ethereum’s short-term outlook, while technical indicators continue to favor buyers. However, with the 4-hour RSI approaching overbought territory and significant liquidation liquidity sitting around $2,550, the next move could determine whether ETH pushes toward $2,600 and $2,700 or falls back toward support.
Key Takeaways
- Ethereum recovered from around $2,370 to above $2,520 within 24 hours.
- The 4-hour RSI climbed to 66.87 as ETH approached the upper Bollinger Band.
- Key liquidation clusters sit around $2,540–$2,550 and $2,485–$2,490.
- Spot Ethereum ETFs recorded $141.39 million in net inflows on Sept. 3.
- A convincing weekly close above $2,550 could strengthen the case for a move toward $3,000.
Ethereum Price Rebounds Toward $2,550
Ethereum was trading around $2,524 after gaining approximately 5.7% over the previous 24 hours.
The cryptocurrency had fallen as low as roughly $2,370 before buyers stepped in, leaving ETH more than 6% above its intraday bottom.
The recovery came alongside a broader improvement across the cryptocurrency market. Bitcoin climbed above $81,000, while expectations surrounding U.S. monetary policy also became more supportive of risk assets.
Federal Reserve Governor Christopher Waller indicated that he could support keeping interest rates unchanged if incoming inflation figures continue to show that price pressures are easing.
His comments reduced expectations for another interest-rate increase at the Federal Reserve’s Sept. 15–16 meeting.
Treasury yields and the U.S. dollar also moved lower as investors adjusted their rate expectations, creating a more favorable environment for risk-sensitive assets such as Ethereum.
Weak U.S. employment data provided another boost.
The ADP National Employment Report showed that private employers added approximately 38,000 jobs in August, below economists’ expectations of roughly 47,000.
The softer reading strengthened expectations that the Federal Reserve may have less reason to tighten monetary policy aggressively.
Despite these supportive developments, Ethereum has still not confirmed a breakout.
ETH reached an intraday high around $2,547 before slipping back below $2,550, showing that sellers continue to defend this important resistance zone.
Whale Transfers Create Potential Selling Pressure
Ethereum’s recovery is also facing potential supply pressure from large holders.
Blockchain tracker Lookonchain reported that one major holder received approximately 167,855 ETH before beginning to transfer some of those tokens to centralized exchanges.
The wallet deposited around 70,739 ETH, worth approximately $174 million at the time, across several exchanges over two days.
However, the wallet reportedly continued to hold roughly 97,115 ETH, valued at nearly $237 million.
Large exchange deposits often attract attention because they can indicate that an investor is preparing to sell.
However, transferring ETH to an exchange does not automatically mean those tokens have been sold.
Therefore, claims that the entire 167,855 ETH position was liquidated would go beyond what the available on-chain data confirms.
Even so, additional exchange deposits could create selling pressure if Ethereum continues struggling to break above $2,550.
Ethereum ETF Inflows Support Demand
Institutional demand is providing some support on the other side of the market.
U.S. spot Ethereum ETFs reportedly recorded approximately $141.39 million in combined net inflows on Sept. 3.
Positive ETF flows can increase spot-market demand for ETH and help offset selling pressure from other market participants.
Continued institutional inflows would therefore strengthen Ethereum’s recovery, particularly if buyers are able to turn the $2,550 resistance level into support.
Ethereum RSI Shows Strong Momentum
Ethereum’s 4-hour technical indicators currently favor buyers.
ETH was trading near $2,523.79, close to the upper Bollinger Band at approximately $2,544.17.
The middle Bollinger Band, which represents the 20-period simple moving average, sits around $2,444.67.
Ethereum’s 4-hour Relative Strength Index has also climbed to 66.87, while its RSI moving average is significantly lower at approximately 50.18.
This suggests short-term momentum remains strongly tilted toward buyers.
However, the RSI is approaching 70, the level commonly associated with overbought conditions.
That does not necessarily mean Ethereum is about to fall, but it suggests that the market is becoming increasingly stretched after its sharp recovery.
A decisive close above both the upper Bollinger Band and $2,550 resistance would provide stronger confirmation of another breakout attempt.
If buyers succeed, the next major resistance zones could emerge around $2,600 and $2,700.
Beyond those levels, the psychological $3,000 mark could eventually become the larger target.
$2,500 Remains the First Support to Watch
If Ethereum fails to break through $2,550, the $2,500 level becomes the first short-term support zone.
A drop below $2,500 could bring the Bollinger Band midpoint around $2,445 back into focus.
Below that, the lower Bollinger Band sits near $2,345.
Ethereum’s daily chart remains more constructive.
ETH is still trading above its Supertrend support near $2,223.45, while the Chaikin Money Flow indicator stands around 0.24.
A positive CMF reading generally indicates that buying pressure has been stronger than selling pressure over the indicator’s measurement period.
This means Ethereum could experience a short-term pullback without necessarily damaging its broader bullish structure.
However, losing $2,445 would weaken the immediate recovery.
A break below approximately $2,345 could expose the recent $2,370 low again and potentially bring the broader $2,300 support zone into play.
Liquidation Map Makes $2,550 Even More Important
Ethereum’s liquidation map reinforces the importance of the $2,550 region.
One of the nearest concentrations of leveraged positions sits between approximately $2,535 and $2,550.
If Ethereum breaks above this range, leveraged short sellers could be forced to close their positions.
Those liquidations generate additional buy orders and could accelerate a confirmed breakout.
On the downside, a major concentration of liquidation liquidity appears around $2,485–$2,490.
Other clusters are visible near $2,460 and $2,400.
This places Ethereum between two relatively close pools of leveraged positions.
A push above $2,550 could therefore trigger a short squeeze, while a fall below $2,490 could increase downward momentum toward $2,460.
CoinGlass reportedly recorded approximately $115 million in Ethereum futures liquidations during the previous 24 hours.
Open interest remained near $34.23 billion, suggesting a significant amount of leveraged exposure is still present in the market.
That could contribute to stronger volatility if ETH makes a decisive move in either direction.
Could Ethereum Reach $3,000?
Several analysts are watching $3,000 as a potential target if Ethereum can finally overcome its current resistance.
Analyst Ted Pillows highlighted the repeated rejection near $2,550 and argued that a weekly close above this level could allow ETH to move quickly toward $3,000.
Market commentator Lucky has also identified $3,000 as a possible longer-term target after Ethereum appeared to break out of a descending channel and successfully retest the previous trend resistance.
However, these targets remain conditional.
Ethereum must first establish a convincing breakout above $2,550 and maintain its reclaimed technical structure.
The nearer resistance levels around $2,600 and $2,700 would also need to be cleared before $3,000 becomes a more realistic short-term target.
U.S. Economic Data Could Drive Ethereum’s Next Move
Macroeconomic developments will remain another important factor for ETH.
U.S. traders are closely watching the official August employment report along with upcoming inflation data.
If employment and inflation continue to cool, Treasury yields could remain under pressure and expectations for another Federal Reserve rate hike could decline further.
That environment would generally be supportive of Ethereum and other risk assets.
However, stronger-than-expected economic data or renewed inflation pressure could push rate-hike expectations higher again.
That could strengthen the U.S. dollar and Treasury yields while putting renewed pressure on crypto prices.
What’s Next for Ethereum Price?
Ethereum’s sharp rebound has brought buyers back into control, but $2,550 remains the key obstacle.
A decisive 4-hour or weekly close above this level would strengthen the bullish structure and could open the door toward $2,600 and $2,700.
If momentum remains strong beyond those levels, the psychological $3,000 target could eventually return to focus.
On the downside, $2,500 is the first support level to watch, followed by $2,485–$2,490 and approximately $2,445.
A deeper correction could send ETH back toward $2,400–$2,345.
For now, Ethereum’s momentum remains positive, but the combination of an RSI near 67, overhead liquidation liquidity and repeated resistance around $2,550 makes this level the most important test for bulls.
