Ethereum has recently experienced a significant decline, dropping by more than 10% in the past 24 hours. This drop comes amidst global tensions and macroeconomic uncertainty, which have shaken investor confidence across various markets. The primary factors contributing to this retrace include the rise in US bond yields and escalating trade conflict rhetoric between major global powers, particularly the United States and China. While Bitcoin has managed to maintain its position above key support levels, altcoins like Ethereum are facing pressure, leading to caution among short-term traders.
Despite the current challenges, some analysts view this dip as an opportunity rather than a threat. Renowned analyst Ted Pillows has shared technical insights indicating that Ethereum is holding range support effectively, even after the sharp decline. According to Pillows, ETH’s ability to stay above critical support zones is a positive sign, suggesting a potential breakout towards higher levels if it regains momentum within the range.
The upcoming weeks are expected to be crucial for Ethereum and the broader altcoin market. If market volatility subsides and Bitcoin continues to consolidate above $100,000, Ethereum could potentially lead the next upward movement, paving the way for a robust altseason. Traders are closely monitoring how ETH performs around its current support levels to determine whether a deeper correction or a bullish reversal is on the horizon.
Amidst the market volatility, Ethereum has demonstrated resilience by maintaining key support levels despite the prevailing macroeconomic uncertainties and political tensions. The cryptocurrency has shown strength near the $2,400 range, approximately 48% below its all-time high, indicating substantial upside potential if momentum continues to build. Ethereum’s ability to hold its ground within the current range is a positive sign amidst the challenging market conditions.
Ted Pillows highlighted in a recent analysis that Ethereum is effectively holding range support following the recent downturn. Reclaiming this range is crucial as it signifies that bulls are still in control. If ETH can surpass near-term resistance levels and reclaim the $2,600 mark, it could potentially surge towards $3,000, marking a significant psychological and technical milestone.
In terms of price action, Ethereum is currently trading around $2,466, slightly above the 34-day EMA at $2,422 after a volatile period. The cryptocurrency is within a consolidation range between $2,400 and $2,700, striving to stabilize above the 50-day and 100-day moving averages. Despite the pressure on altcoins, ETH has managed to avoid a breakdown and is making efforts to stay above key moving averages.
The chart illustrates that ETH’s recent pullback halted just before the 100-day SMA (~$2,068), a crucial support level in previous cycles. Maintaining this structure is essential for sustaining a bullish outlook. If bulls can push the price above the 200-day SMA at $2,666, Ethereum may attempt a breakout above $2,700, potentially leading to a surge towards $3,000 and signaling renewed strength in the broader altcoin market.
Moderate trading volume suggests that traders are awaiting confirmation before entering new positions. As long as Ethereum remains above the $2,400–$2,450 region, the bullish thesis remains intact. However, a daily close below $2,400 could expose the asset to a deeper correction towards the $2,200 zone, where the 100-day EMA offers additional technical support.
In conclusion, Ethereum’s resilience amidst market volatility and its ability to hold key support levels indicate potential for a bullish reversal in the near future. Traders are advised to monitor ETH’s price action closely for any significant developments that could shape its trajectory in the coming weeks.