Ethereum is trading above $1,700 after a volatile few weeks, with bulls now trying to reclaim higher levels and flip resistance into support. Despite lingering macroeconomic tensions and the ongoing trade standoff between the US and China, markets are beginning to price in optimism as investors anticipate progress in negotiations. This renewed sentiment has lifted risk assets like ETH, which is showing early signs of a potential breakout.

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Analysts are closely watching Ethereum’s current price action, which suggests a possible shift in trend. Top analyst Daan shared a technical view on X, highlighting that ETH is attempting to retake its previous horizontal support around $1,750. If successful, this would mark the first time in months that Ethereum reclaims a key support level after previously rejecting it and setting lower lows.

As Ethereum fights to regain lost ground, all eyes are on this critical level. A breakout here could lead to a renewed surge across the altcoin market, reinforcing growing speculation that the worst of the correction may already be behind us.

Ethereum Bulls Attempt to Shift Market Structure

Ethereum has rallied impressively, gaining over 32% from its local low of $1,383. This recovery has brought ETH to a critical price level, where bulls must hold and build momentum to break the broader downtrend that has defined much of 2024. A sustained move above current levels could mark a long-awaited shift in market structure, providing confidence that Ethereum is ready to trend higher over the medium term.

However, broader macroeconomic forces continue to weigh heavily on investor sentiment. Ongoing trade tensions between the United States and China remain unresolved, with each new tariff threat adding further strain on global supply chains. These geopolitical pressures threaten to limit risk appetite, and any further escalation could stall Ethereum’s recovery. On the flip side, a diplomatic breakthrough could trigger a strong shift in investor positioning across all risk assets, including crypto.

In the meantime, Ethereum must defend current levels to keep bullish momentum intact. Daan’s analysis highlighted that ETH is currently testing the $1,750 level, which previously acted as key support. If Ethereum can reclaim this horizontal zone, it would mark the first time in months that ETH retakes rather than rejects a critical level. Daan emphasized that daily closes above $1,750 are ideal and would confirm strength, potentially opening the door for a larger breakout.

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ETH Price Holds Key Levels, Bulls Must Reclaim $2K Soon

Ethereum is currently trading at $1,770, maintaining strength above the 4-hour 200 EMA—a key short-term indicator that has historically acted as both resistance and support during critical trend shifts. Bulls have managed to defend this level over the past few sessions, signaling growing confidence and momentum as Ethereum attempts to recover from its recent downtrend.

Holding above the $1,700 zone is now essential to avoid triggering another wave of selling. This level has become the new battleground for bulls and bears, and continued consolidation above it may lay the groundwork for a broader rally. The next major objective is a decisive reclaim of the $2,000 level. A breakout above this threshold would mark a strong shift in sentiment and could trigger additional upside as sidelined buyers re-enter the market.

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However, caution remains warranted. A failure to hold current support would invalidate the recovery narrative and open the door to further losses. If Ethereum breaks below $1,700 with volume, it could revisit the $1,500 level, which has acted as a historical demand zone. That would reinforce a longer-term bearish structure and delay any hopes of a full-scale recovery.

Featured image from Dall-E, chart from TradingView

The founder of the smart contract platform Cardano (ADA), Charles Hoskinson, is warning that the future of Ethereum (ETH) could be in question.

In an Ask Me Anything (AMA) on his YouTube channel, Hoskinson says he doesn’t “think Ethereum will survive more than 10 to 15 years.”

According to Hoskinson, Ethereum faces existential threats both from within its ecosystem and externally.

“The [Ethereum] layer-2s will continue to suckle out all of the alpha and people will start fighting and it will get harder and harder for [Ethereum co-founder] Vitalik [Buterin] to be able to hold it together through sheer force of will.

And users will gradually migrate to other places and then they’re going to get eclipsed by Bitcoin DeFi (decentralized finance). Because once that turns on, the TVL (total value locked) will be larger than Ethereum and a lot of people will start migrating in that particular direction…

…and the other thing is they’re being eaten alive by Solana and Sui and these other things.

So, brilliant project. It’s just a victim of its own success. Like MySpace [social network] or any of these other things that have a lot of network effect and momentum. BlackBerry [smartphone] is another example. But people have fundamentally different paradigms that over the long term are intrinsically superior. And they creep up on you.”

The Cardano creator says that Ethereum’s problems can be traced to three mistakes made by the founders and developers.

“The number one problem Ethereum has is that they took an easy road out where they did three things wrong.

So first off, wrong protocols. They have the wrong accounting model, they have the wrong virtual machine and they have the wrong consensus model.

All of these were self-inflicted wounds. People told them not to do it, they did it and they got where they needed to go.

Second, what they chose to do to solve these problems is put in all these weird slashing economics and layer-twos and other things and now they’re living with all of the consequences of these types of things.

And third, they really don’t have a good on-chain governance system

So really what needs to happen is you need a parallel track with solving all those three things.”

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