Ethereum price is trading near a key decision area as ETH continues to hold around the $2,300 region. The latest setup shows a market that is no longer falling aggressively, but still needs a clean breakout to confirm stronger upside.

According to Brave New Coin, Ethereum is trading around $2,307, nearly flat over the last 24 hours, with 24-hour volume above $7.26 billion.

Ethereum (ETH) was trading at around $2,307, down 0.05% in the last 24 hours. Source: Brave New Coin

Bullish Divergence Keeps $2,340 in Focus

The short-term technical picture has improved after Ethereum reacted from support. Trader Symba highlighted that ETH showed a bullish divergence near the $2,265–$2,275 zone, where price made a lower move while RSI started to recover.

That reaction pushed ETH higher and brought price close to the $2,340 resistance area. This level is now the first major upside test. A clean move above $2,340 would show that buyers are gaining control and could open a push towards $2,400.

ETH reacted from the $2,265–$2,275 support zone after bullish divergence appeared, with $2,340 now acting as the next key resistance. Source: Trader Symba via X

The RSI has also improved from lower levels and is now closer to the mid-range, which supports the idea that bearish pressure is fading. However, ETH still needs confirmation. As long as the price remains below $2,340, the move is only a recovery attempt.

CME Gap Could Pull ETH Towards $2,400–$2,650

Another important upside factor comes from the CME chart. CryptoJack noted that Ethereum has a large CME gap above current price, and ETH may first move higher to fill that gap before any deeper pullback takes place.

The visible gap zone sits roughly between $2,400 and $2,650. This creates a clear upside magnet if ETH manages to break above $2,340 and hold strength above $2,400.

Ethereum has an upper CME gap above price, with the $2,400–$2,650 region becoming a key upside area if momentum continues. Source: CryptoJack via X

CME gaps do not always fill immediately, but traders often watch them closely because price frequently revisit these empty zones over time. For Ethereum, this means the $2,400 level is not just normal resistance.

Short Liquidations Could Fuel a Stronger Move

Derivatives positioning also adds an interesting layer to the Ethereum price prediction. Max Crypto highlighted that around $8 billion in short positions could be liquidated if ETH pumps by 20%.

This shows that many traders are positioned against ETH right now. If price starts moving higher and breaks key resistance, those shorts could be forced to close, adding extra buying pressure into the market.

Around $8 billion in ETH shorts could be liquidated if Ethereum rallies by 20%, creating potential fuel for a sharper upside move. Source: Max Crypto via X

This is why the $2,340–$2,400 region matters so much. A breakout above this band would not only confirm technical strength, but could also trigger forced buying from short liquidations. In that case, ETH could move faster than expected towards the CME gap zone.

Bears Still Watching $2,300 Rejection Risk

Despite improving short-term signals, Ethereum is not fully out of danger. Ted Pillows pointed out that ETH is still lagging despite Bitcoin’s strength, which is not ideal for bulls.

His chart shows ETH hovering near the $2,300 region while facing overhead resistance. The main bearish view is that if Ethereum fails to hold above the current support zone, price could rotate lower again.

ETH is still lagging near the $2,300 level, with downside risk remaining if broader market conditions weaken. Source: Ted Pillows via X

The downside levels are clear. Losing $2,265 would weaken the short-term structure and expose $2,150–$2,100. A deeper breakdown below that zone could bring the $1,700–$1,600 region back into focus. For now, this remains the risk scenario, especially if stocks or Bitcoin start correcting.

Final Thoughts: Can ETH Turn This Recovery Into a Breakout?

Ethereum is showing signs of recovery, but the breakout is not confirmed yet. The bounce from the $2,265–$2,275 support zone shows that buyers are still active, while the move back towards $2,300 suggests momentum is slowly improving.

The real test now sits at $2,340. If ETH breaks and holds above this level, the recovery could turn into a stronger breakout towards $2,400 and possibly the $2,400–$2,650 CME gap zone. With heavy short positioning still present, a strong move above resistance could also trigger faster upside pressure.

For now, ETH price remains slightly constructive, but the chart still needs confirmation. Holding support keeps the bullish case alive, while a breakout above $2,340 would be the signal that buyers are finally taking control.