Ethereum is currently above critical support levels after weeks of volatility, but continues to struggle to retrieve key zones of resistance. The bull was able to regain some momentum, helping the ETH stabilize above the $1,700 level. However, in order to confirm the true bullish structure and to shift sentiment decisively, Ethereum must once again retain the highlands in the coming days.
Top analyst Dahn shared a technology setup that highlights promising development. Ethereum is reverting its previous horizontal level to support. According to Daan, this indicates a meaningful change in the market dynamics of Eth. This is what your assets haven’t done in months. Instead of consistently rejecting resistance and creating a low low, ETH shows early signs of strength by protecting critical zones.
Still, the battle is not over. The global macro uncertainty and tension between the US and China continues to put pressure on all risk assets, including crypto. In the case of Ethereum, daily closures outweigh the main resistance could lead to a more critical movement, but otherwise they could remain vulnerable to other integrations or downsides.
Ethereum faces critical tests after a strong recovery
Ethereum made an impressive recovery, earning over 32% from the local low of $1,383. Currently trading $1,700 solidly, ETH is facing a critical test. It will retain its current levels and shift the long-term bearish price structure to a more bullish trend. After months of relentless sales pressure, this stabilization could mark the onset of a larger inversion if momentum persists.
However, broader macroeconomic risks are still looming. The ongoing conflict between the US and China continues to put pressure on financial markets, raising concerns that the long-term negotiation process could disrupt the global supply chain. If a solution is not reached in the coming weeks, risky assets like Ethereum could struggle to maintain recent profits. However, groundbreaking transactions could quickly turn investors’ appetites back into risk-on assets and drive stronger rally.
Daan’s technical analysis highlights major changes in ETH behavior. For the first time in months, Ethereum has turned its previous horizontal resistance zone over and back to support. This is a sign that strengthens market dynamics. Daan suggests closely monitoring the range from $1,750 to $2,100. This is because companies that surpass this area show significant improvements in the structure of ETH.
Over $1,750 a day, with a gradual integration within this key range, Ethereum will be positioned for potential breakouts to higher levels in the coming months.
ETH prices exceed major support, but challenges remain
Ethereum is currently trading at $1,790 and remains in position above the key 4-Hour 200 EMA. This level of technology has recently served as a powerful support and provides the foundation for building momentum for the bull. Over $1,700 is important to maintain the bullish structure that began to form after weeks of volatility and sales pressure.
To see a strong recovery and move towards a sustained upward trend, ETH must regain a psychological level of $2,000. A critical break and retention of over $2,000 is likely to attract new purchase rights and could open the door to a higher zone of resistance. However, without a strong catalyst, the Bulls could struggle to maintain upward pressure in the short term.
On the downside, losing $1,700 in support can lead to increased debilitating and potentially inviting more sales. A break under this zone could bring Ethereum back to the $1,500 region and rekindle concerns of long-term integration or deeper revisions. For now, the market remains cautiously optimistic, but all eyes are on whether the Bulls can quickly build up enough momentum to regain the highlands.
Dall-E special images, TradingView chart
