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Ethereum ($ETH) has delivered a major breakout that could create a shift across crypto, according to a recent market analysis. $ETH hit $2,370, surging 25% as $4 billion in short positions were liquidated, marking what was described as the largest crypto short squeeze in history.
$ETH Sentiment Turns Bullish
Ethereum’s broader trend has turned bullish after breaking out of the prolonged range it had been stuck in. The move is being compared with Ethereum’s breakout in early 2023, which was followed by a much larger bull phase.
However, the recent rally has been extremely strong, so a pause or pullback would not be surprising. Ethereum could move sideways for several weeks while the market absorbs the gains before attempting another move higher.
The next major price area to watch is $2500- $2600. $ETH could potentially gain another 7%-12% to reach this zone, but resistance could emerge there.
$2500-$2600 Is the Big Test
A move toward $2,500 would put Ethereum at an important long-term hurdle, with $2,600 another key level.
Breaking through this range would be important because it would show that Ethereum is finally pushing beyond major resistance after years of struggling below these levels.
Is this an Altcoin Signal
Ethereum’s strength could be an important factor for altcoins because $ETH often leads to big changes in crypto market sentiment.
- The global crypto risk score has climbed from 6 on June 10 to 9, while Ethereum’s score has increased from 14 to 32. Historically, when the global crypto market reached a risk score of 9, prices were higher three months and one year later 100% of the time in the historical data.
- The U.S. ISM Manufacturing Purchasing Managers’ Index (PMI) remained in expansion through mid-2026, rising from 53.3 in July to 55.6 in August. 50.0 is the baseline separating economic growth from contraction, which is a sign of stronger business activity.
- For now, $2500-$2600 is the key zone. If Ethereum breaks through it, the move could become a much stronger level that a new crypto bull phase is developing, potentially giving altcoins the confirmation they have been waiting for. On the downside Altcoin Season Index sits at 37 which shows altcoin’s have a long way to go for a confirmed altseason.