Ethereum Hits $2.5K Resistance Amid Overbought Conditions

Ethereum's recent price action has brought it to a critical juncture as it tests the $2.5K resistance zone after a sharp 35% rally.

The cryptocurrency broke out of its prolonged bearish structure and reclaimed the $2.07K-$2.15K area, but overbought conditions are raising concerns about consolidation or a pullback.

A move above $2.51K could support further gains, while the first notable pullback zone lies between $2.22K and $2.31K, with deeper support around $2.07K-$2.12K.

The daily relative strength index has entered overbought territory after the sharp move, indicating that the rally may be extended and could give way to sideways trading or a corrective decline if selling pressure increases.