Ethereum Smashes Through Resistance – Bulls Now Eye $2K as New Support Floor

Ethereum just pulled off a classic bullish reversal—turning what was once stiff resistance into a springboard for higher prices. The $2,000 level is back in play, and traders are watching to see if ETH can hold this ground.

Why it matters: Breaking key resistance often triggers algorithmic buying and FOMO inflows. But let’s be real—Wall Street still thinks ’blockchain’ is a type of Peloton accessory.

Next hurdle? Clearing $2,100 with conviction. Fail here, and we’re back to range-bound purgatory. Either way, the charts are screaming one thing: volatility is back on the menu.

Ethereum Faces A Critical Test After Strong Recovery

Ethereum has staged an impressive recovery, gaining over 32% from its local low of $1,383. Now trading firmly above $1,700, ETH faces a crucial test: holding current levels to shift its longer-term bearish price structure into a more bullish trend. After months of relentless selling pressure, this stabilization could mark the start of a larger reversal if momentum is sustained.

However, broader macroeconomic risks still loom. The ongoing conflict between the US and China continues to pressure financial markets, with growing concerns that a prolonged negotiation process could disrupt global supply chains. If no resolution is reached in the coming weeks, risk assets like Ethereum could struggle to maintain their recent gains. A breakthrough deal, however, could quickly shift investor appetite back toward risk-on assets, fueling a stronger rally.

Daan’s technical analysis highlights a major shift in ETH’s behavior. For the first time in months, Ethereum is flipping a previous horizontal resistance zone back into support—a sign of strengthening market dynamics. Daan suggests closely monitoring the $1,750–$2,100 range, as a firm hold above this area would signal a significant improvement in ETH’s structure.

A daily close above $1,750 and gradual consolidation within this key range would position Ethereum for a potential breakout toward higher levels in the coming months.

ETH Price Holds Above Key Support, But Challenges Remain

Ethereum is currently trading at $1,790, maintaining its position above the critical 4-hour 200 EMA. This technical level has acted as strong support in recent days, providing bulls with a foundation to build momentum. Holding above $1,700 is crucial to maintain the bullish structure that has started to form after weeks of volatility and selling pressure.

To confirm a strong recovery and shift into a sustained uptrend, ETH must reclaim the $2,000 psychological level. A decisive break and hold above $2,000 would likely attract renewed buying interest and could open the door for a move toward higher resistance zones. However, without a strong catalyst, bulls could struggle to maintain upward pressure in the short term.

On the downside, losing the $1,700 support would signal growing weakness and likely invite further selling. A break below this zone could send Ethereum back into the $1,500 region, reigniting concerns of a prolonged consolidation or deeper correction. For now, the market remains cautiously optimistic, but all eyes are on whether bulls can build enough momentum to reclaim higher ground soon.

Featured image from Dall-E, chart from TradingView