Ethereum Technical Analysis: Trend and Key Levels on May 21, 2025

Technical analysis of Ethereum on May 21, 2025, focusing on resistance, support, and indicators

On May 21, 2025, Ethereum (ETH), the second-largest cryptocurrency, is a focal point for technical analysts. Ethereum’s price is trading around $2,750, having risen from $2,388 in early April 2025 to a high of $2,856. However, selling pressure near key resistance levels has introduced price volatility. Daily timeframe technical analysis shows Ethereum forming an ascending triangle pattern since late March 2025. The price is currently near the upper trendline of this triangle, indicating buying pressure. The Relative Strength Index (RSI) at 68 confirms bullish momentum, but its proximity to overbought territory (above 70) suggests a potential short-term correction. Key resistance levels for Ethereum are at $3,200 and $3,550. The $3,200 level is significant due to recent price highs and high trading volume in this zone. A breakout above this could target $3,550, aligning with the 61.8% Fibonacci retracement from the prior decline. Conversely, key support levels are at $2,400 and $2,100. The $2,400 level coincides with the 50-day moving average (MA50) and serves as strong support. The MACD indicator provides bullish signals, with the MACD line above the signal line and the histogram in positive territory. However, a slight reduction in histogram size may indicate weakening momentum. A mild bearish divergence in RSI is also observed, where the price hits new highs, but RSI forms lower highs, potentially signaling a price pullback. Moving averages are critical to the analysis. The 50-day moving average is at $2,488, and the 200-day moving average is at $2,344. Ethereum is trading well above both, confirming a bullish trend in the medium and long term. However, the price’s distance from the 200-day moving average suggests the uptrend may be overextended. Ethereum’s daily trading volume reached approximately $22.5 billion on May 21, 2025, reflecting high market activity. However, a relative decline in volume compared to recent price highs could indicate reduced buyer participation. The On-Balance Volume (OBV) indicator continues to rise, suggesting demand outweighs supply. From a price pattern perspective, Ethereum is testing the upper trendline of the ascending triangle. A breakout could lead to a strong bullish move toward $3,550. Conversely, a rejection at this level may push the price back to the $2,400 support. Recent candlestick patterns, such as a doji near resistance, indicate market indecision. In the short term, traders should monitor the $2,400 support and $3,200 resistance. A breakout above resistance or a bounce from support could guide trading strategies. For long-term investors, accumulating at key support levels like $2,400 to $2,100 may offer attractive opportunities. Overall, Ethereum exhibits a strong bullish trend on May 21, 2025, but overbought signals and divergences warn of a potential short-term correction. Traders should employ careful risk management and monitor indicators for informed decisions.