Ethereum (ETH) has managed to hold a critical support level following a recent correction, signaling a potential breakout in the near future. The cryptocurrency’s resilience in bouncing back from historical demand zones has caught the attention of analysts, who believe that ETH is poised for a significant price movement.
The recent recovery saw Ethereum reclaim the key $1,600 level after briefly dipping below the $1,400 support, marking its lowest point in two years. The correction was triggered by global market concerns surrounding US President Donald Trump’s trade tariff war. However, ETH managed to bounce back, surging over 10% from $1,480 to $1,600 after Trump announced a 90-day tariff pause. The cryptocurrency then consolidated within the $1,400-$1,500 range before reclaiming the $1,600 support and entering a bullish phase.
Analyst Ted Pillows has noted that Ethereum could be on the verge of breaking out from its short-term downtrend line, with the potential to reach the $2,000 resistance level. Maintaining its current price range of $1,550-$1,600 could pave the way for a 20% jump towards the $2,000 mark, especially as global markets show signs of recovery.
Market watcher Merlijn The Trader has also expressed optimism about Ethereum’s future, pointing out a two-month descending channel that could be invalidated with a surge in trading volume. Breaking above the $1,690 level could open the door for a rally towards $2,700, according to his analysis. Additionally, the completion of a double top formation and confirmation of a breakout above the $1,432 level suggest that ETH has weathered the storm and is now poised for a significant rally.
Rekt Capital highlighted Ethereum’s dominance levels, which have nearly reached historic lows since June 2023. A reversal in ETH dominance could bode well for altcoin valuations in the long term, potentially signaling a turnaround for the cryptocurrency.
As of the latest update, Ethereum is trading at $1,609, with a slight decrease in the daily timeframe. The cryptocurrency’s performance in the one-week chart indicates a potential uptrend, with the $2,000 resistance level in sight.
In conclusion, Ethereum’s recent recovery and resilience in holding key support levels have sparked optimism among traders and analysts. With the potential for a breakout looming, ETH could be gearing up for a significant price movement in the near future. Stay tuned for more updates on Ethereum’s performance in the coming days.