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Ethereum (ETH) continues to hold a crucial support level after recovering from last week’s correction. Its recent bounce from historical demand zones has led some analysts to suggest that the altcoin is gearing up for a breakout.
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Ethereum Holds Key Support
Ethereum has reclaimed the key $1,600 level after dropping below the $1,400 support for the first time since 2023. The second-largest cryptocurrency by market capitalization recently fell to a two-year low during last week’s correction, fueled by US President Donald Trump’s trade tariff war.
ETH touched $1,385 last Wednesday, retesting the 2018 all-time high (ATH) levels before recovering. Amid Trump’s 90-day tariff pause announcement, Ethereum jumped over 10% from $1,480 to $1,600, briefly nearing the $1,700 resistance. However, its price retraced to the $1,400-$1,500 support zone on Thursday amid the market’s volatility.
Over the weekend, the King of Altcoins recovered, hovering between the $1,580-$1,680 price range for the past four days. Ethereum has reclaimed the $1,600 support in the past 24 hours, fueling a bullish sentiment among some market watchers.
Analyst Ted Pillows noted that ETH might be getting closer to a breakout from its short-term downtrend line. According to him, investors could expect the cryptocurrency to hold the $1,550-$1,600 level now that global markets are gaining some strength.
He considers holding this range could propel Ethereum’s price toward the one-month downtrend line. A breakout and confirmation of this resistance, at around $1,670, could set the base for a 20% jump toward the $2,000 resistance level.
Is ETH Out Of The Woods?
Merlijn The Trader suggested that ETH is gearing up for a breakout. The market watcher pointed out the cryptocurrency’s two-month descending channel, which could be “history” if volume surges.
The analyst considers that as Ethereum nears the channel’s upper boundary, “all we need now is volume” for a surge above the $1,690 mark, adding that a breakout from this level would target $2,700.
He also underscored that ETH’s double top formation was completed after “smashing” the $1,432 target, signaling that it “survived the storm.” Notably, the cryptocurrency confirmed this pattern, which developed within its $2,196-$3,904 Macro Range, following its March close below the $2,100 support.
After recovering from the recent lows, “Now comes the face-melting rally no one expects. $4,000 is only the beginning.”
Meanwhile, Rekt Capital highlighted that Ethereum’s Dominance has almost equaled old All-Time Lows. He explained that since June 2023, ETH’s Dominance has dropped from 20% to 8%, historically a reverse area for the cryptocurrency.
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“Generally, Ethereum Dominance needs to hold this green area for a chance at reversal Increasing ETH Dominance would be highly beneficial for Altcoin valuations over time,” he noted Monday.
When the ETH Dominance hit the $7.5%-8.25% range, it reversed “to become more market-dominant,” which could signal a reversal for the King of Altcoins.
As of this writing, ETH trades at $1,609, a 1% decrease in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
