Ethereum Bulls Target $3,500 as ETH Breaks Past $2,550 Resistance

Ethereum trades between a coiling range of $2,400 and $2,750, presenting a textbook bullish pennant formation. Analysts suggest that with support on technical grounds near $2,500 and increases in institutional interest, any breakout confirmed above $2,550 would thereby increase the odds for a further rally with targets above $3,500.

Technical Setup Builds Toward Potential Breakout Ethereum

The current Ethereum price structure shows consolidation after a strong move from $1,900 to $2,730, forming the base of the bull flag. ETH is holding above key support at $2,300, which has been tested multiple times but not broken. The $2,550 level remains critical, and a breakout above this line would complete the pennant.

$ETH IS COILING TIGHT.

Bullish pennant is nearly complete.

Breakout above $2,550? That’s ignition.
Target: $3,500+

This time… don’t miss it. pic.twitter.com/Hc7pmbPu54

— Merlijn The Trader (@MerlijnTrader) May 20, 2025

According to analysis prepared by The Crypto Information analyst Martinez, Ethereum shows signs of strength as it continues to build higher lows, while the 200-day EMA offers solid structural support. Martinez identifies $3,100 as the next major resistance, with a clean breakout above this zone potentially extending gains further toward $3,500.

Ethereum also recently registered a golden cross on the 12-hour chart, with the 50-day simple moving average crossing above the 200-day average. Such crossovers are often linked to medium-term bullish trends, especially when combined with rising RSI and volume.

Institutional Accumulation and On-Chain Strength Support the Trend – ETH

Institutional demand remains strong. According to The Crypto Information, Abraxas Capital purchased 350,703 ETH since May 7, with a recent addition of 46,295 ETH worth $115.3 million. This accumulation reflects growing confidence, with an average buy price of $2,386.

Ethereum’s exchange reserves are declining, indicating tighter supply. Spot Ethereum ETFs saw renewed activity, with fresh inflows totaling $64.8 million on May 20 alone. Data from The Crypto Information shows open interest in Ethereum futures holding steady at $31.32 billion, while recent price action suggests buyers are defending key zones.

If Ethereum clears the $2,550 resistance with strong volume, the current setup could initiate a move toward $3,500 and beyond.