Ethereum (ETH-USD) enters September trading near $2,442 after breaking out of a long-term downward channel. A large 31% weekly candle two weeks ago established the first higher high of the current market cycle. This surge pushed ETH prices above a descending trendline that had capped every rally since the August 2025 peak at $4,958.
The move places Ethereum right at the 0.618 Fibonacci retracement level of $2,438.85. Holding above this price point keeps the $2,919.89 resistance target in play, which sits roughly 19% higher. However, if sellers push prices below $2,438, Ethereum could retest lower demand zones between $1,600 and $1,760 that previously absorbed a lot of selling in 2023 and 2025.
ETH Is Facing Resistance at $2,550
Despite the recent breakout, short-term resistance continues to limit ETH’s upside progress. Ethereum failed to clear $2,550 on its latest attempt, a level that aligns directly with the 50-week moving average at $2,542. This rejection suggests price action could move sideways or experience a brief dip before starting a sustained trend reversal, making $2,200 key downside support and $2,800 major resistance.
Leveraged trading positions add extra risk to this choppy outlook. A large trader recently opened a 10x leveraged long position worth $102.3 million, facing liquidation if Ethereum drops to $2,241. At the same time, several trading firms hold large short positions, setting up potential price volatility as both sides defend their levels.
Ethereum’s Price Could Target $2,920 in September
Daily price charts confirm that volume spiked between August 19 and August 21 as Ethereum cleared its April high near $2,400. That former resistance area now serves as solid downside support alongside the $2,438 Fibonacci mark. Additionally, the Supertrend technical indicator flipped bullish in July and currently provides a lower safety floor near $2,220.
While daily trading volume cooled after the initial surge, institutional buying helped absorb selling pressure. If Ethereum holds the $2,438 floor through September, chart patterns point toward a run at $2,920. Conversely, a drop below $2,438 opens the door to $2,220, with the psychological $2,000 level standing as the ultimate downside defense.
At the time of writing, ETH’s price is sitting around $2,442.
