Ethereum is currently consolidating below the $2,000 mark, trading within a narrow range between $1,800 and $1,900 as market uncertainty persists. Bulls have lost control, and speculation about a potential continuation of the bear trend is growing among analysts and investors. With macroeconomic instability, rising trade war fears, and erratic policy decisions from US President Trump, both crypto and U.S. stock markets remain highly volatile, adding to Ethereum’s struggles.

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To highlight Ethereum’s fragile position, top analyst Mister Crypto shared a technical analysis revealing that ETH is currently testing a 5-year-long trendline, a crucial level that has historically acted as strong support during major corrections. If Ethereum fails to hold this trendline, the market could see a deeper decline, reinforcing bearish sentiment and potentially pushing ETH toward lower demand zones.

On the other hand, if Ethereum holds above this trendline, it could trigger a strong recovery, offering hope for bulls looking for a reversal. Over the coming days, Ethereum’s reaction at this level will determine its next major move, making this a pivotal moment for the second-largest cryptocurrency.

Ethereum Faces Crucial Test as It Trades Below Multi-Year Support

Ethereum has been under massive selling pressure, driven by macroeconomic uncertainty and trade war fears that have rattled both the crypto and U.S. stock markets. With risk assets struggling to find stability, ETH has lost key price levels and now trades below a critical multi-year support around $2,000, which could flip into strong resistance if bulls fail to reclaim it.

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Analysts warn that Ethereum’s downtrend may continue as broader economic conditions show no signs of improvement. Investors remain cautious, with global trade tensions, inflation concerns, and U.S. regulatory uncertainties weighing on market sentiment. However, despite these bearish factors, some experts believe Ethereum could be preparing for a long-term recovery.

Mister Crypto’s technical analysis on X highlights that Ethereum is currently testing a 5-year-long support trendline, an even stronger level than the $2,000 demand zone. According to his insights, this trendline has historically held during major corrections and served as a key turning point for bullish reversals. If Ethereum maintains support above this level, it could trigger a significant recovery rally, pushing ETH back above $2,000 and beyond.

Over the coming weeks, Ethereum’s price reaction at this crucial trendline will determine whether a reversal is on the horizon or if the bearish trend will extend further.

ETH Bulls And Bears Battle For Control

Ethereum is now at a crucial crossroads, with bulls struggling to reclaim the $2,000 mark, while bears fail to push ETH below $1,800. This prolonged consolidation phase has left investors uncertain about the next major move for ETH.

For a recovery rally to take shape, bulls must reclaim the $2,300 level, which aligns with the 4-hour 200 moving average (MA) and exponential moving average (EMA). Breaking above this level would signal a shift in momentum and pave the way for further upside toward key resistance zones.

However, failure to reclaim the $2,000 mark and hold above crucial moving averages could trigger another wave of selling pressure. A decisive drop below $1,800 would put Ethereum in dangerous territory, opening the door for a potential retest of lower demand zones around $1,600-$1,700.

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With macroeconomic uncertainty and market-wide volatility still in play, ETH traders should watch for a breakout or breakdown from the current range, as the next few sessions will determine the short-term trend for Ethereum.

Featured image from Dall-E, chart from TradingView

A crypto analyst says deep-pocketed investors are snapping up the top layer-1 platform Ethereum (ETH) amid the marketwide digital asset correction.

Trader Ali Martinez tells his 132,900 followers on the social media platform X that whales gobbled up more than $815.514 million worth of ETH in less than a week.

“Whales have bought more than 420,000 Ethereum ETH in [five days]!”

Martinez is also keeping a close watch on Ethereum’s In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as either profiting, breaking even, or losing money – to determine support and resistance levels for ETH.

According to Martinez, ETH is currently trading in a narrow range between stiff support and resistance zones.

“Ethereum ETH key levels to watch! On-chain data reveals $1,870 as the strongest support and $2,050 as its toughest resistance!”

At time of writing, ETH is trading for $1,941.

Turning to Bitcoin (BTC), the trader believes that the crypto king is poised to witness tactical rallies after breaching the horizontal resistance of an ascending triangle pattern.

“Bitcoin BTC is breaking out! The target is $90,000 as long as the $84,000 support holds.”

An ascending triangle pattern may be considered a bullish reversal structure if the asset soars above its horizontal resistance.

At time of writing, Bitcoin is trading for $84,288.

Turning to Ethereum rival Cardano, the analyst predicts rallies for ADA if the altcoin takes out the diagonal resistance of a triangle pattern at around $0.75.

“Cardano ADA is about to break free! Busting out of this triangle will trigger a 15% price move.”

A triangle is typically viewed as a consolidation pattern as it signals a potential breakout in either direction. The asset is considered bullish if the price moves above the diagonal resistance and bearish if it tumbles below the diagonal trend line.

At time of writing, ADA is worth $0.744.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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