Ethereum saw a strong recovery this week, recovering sharply from its $1,380 low, surged more than 21% within hours. The rally was driven by a temporary shift in macro sentiment, following President Donald Trump’s announcement of a 90-day suspension on mutual tariffs in all countries except China, where the country remains under 125% tariffs. The news sparked a relief rally across the financial market, with Ethereum leading the bounce in the crypto sector.
Despite strong movements, ETH is below major technology levels. Also, as bulls try to build momentum, price action shows signs of integration. The broader Altcoin market continues to struggle, with weaknesses across the sector placing importance on investor trust.
According to GlassNode data, all major Altcoin sectors have experienced a sharp decline in recent months. The correction is extensively based, highly correlated and offers little in terms of singular performance. Even Bitcoin and Ethereum are typically considered the most resilient assets in crypto, but they recorded negative returns over the same period.
As Ethereum enters the consolidation phase, traders are checking whether this bounce marks the beginning of a sustained recovery or if it presents another short-lived response with a wider downtrend.
Ethereum faces critical test amid macroeconomic headwinds
Ethereum is once again at a pivotal point in the market after weeks of intense sales pressure and uncertainty. After plunging into fresh bass, the ETH bull finally intervened, trying to regain his key level after a strong bouncing off the $1,380 mark. The move comes amid growing volatility across global markets as fears of a global recession and concerns about trade disputes that have expanded the US-China trade dispute.
Despite the bounce, Ethereum remains on vulnerable territory. The market is clearly divided. While some investors see this rebound as the beginning of a recovery, it should be noted that others may be a temporary pause in a deeper correction. The macroeconomic environment remains hostile, and US tariffs still pose great risks to both traditional and digital assets.
GlassNode data adds context to the Ethereum struggle, indicating that all Altcoin sectors have fallen sharply in recent months. There is little distinction between projects, and the drawdown is broad and highly correlated. Even Bitcoin and Ethereum are typically considered the strongest assets in crypto, but have recorded negative returns.
Ethereum led the decline, losing more than 60% of its value since late December. The sharp drops have sparked growing speculation about the potential bear market that will form throughout the wider Altcoin space. It remains to be seen whether this recent bounce will evolve into sustainable gatherings or decline under macroeconomic pressures. For now, Ethereum is facing a critical moment in the current cycle.
The Bulls struggle to get back to important levels, but they’ll defend $1,500
Ethereum is trading at $1,560 after failing to regain the $1,800 level beyond $1,600. Despite the recent bounce from the low pressures, ETH is in a vulnerable position as market volatility rises and macroeconomic uncertainty continues to put pressure on risky assets.
The bull is beginning to gain momentum, but no recovery has been confirmed. Holding over $1,500 is essential to preventing the downtrend from continuing. This level has served as a psychological support zone in previous market cycles, and losing it can cause another wave of panic sales, especially as emotions in the broader Altcoin market remain suppressed.
If the Bulls can defend and integrate on it, they have the opportunity to regain a higher level in the short term, and could once again challenge $1,600. However, a critical break below $1,500 is likely to lead to further downsides, with price targets potentially expanding to the $1,300-1,200 range.
As volatility continues to drive volatile price action, ETH holders remain cautious. A push that has been confirmed to exceed $1,600 will help you recover some confidence, but for now, Ethereum remains in a critical battle to maintain its position.
Dall-E special images, TradingView chart
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