Ethereum Consolidates Since ‘The Big Dump’ – Local Trend Reversal Or Continuation?
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Ethereum (ETH) is in trouble, with trading volumes below $1,900 and above $1,750 after several days of sales pressure. The wider cryptocurrency market is still under pressure, with fear dominating emotions and preventing ETH from recovering momentum.
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The main reasons for the economic downturn are macroeconomic uncertainty and fear of escalating trade wars that have both shaken cryptocurrency stocks and the U.S. stock markets. As further volatility among investors, some are concerned that the market is changing settings for more in-depth.
However, not all analysts are bearish. Some believe that recovery may occur in the coming months, especially as technical indicators begin to show strength. Top analyst Daan shared his insights on X, showing that Ethereum has been solidifying since its massive sell-off and has formed a wedge pattern, a bullish formation that can indicate a reversal of local trends.
at present, ETH still has risks A further decline, but if this pattern occurs, Ethereum may soon be out of its consolidation range and begin to build momentum for recovery. The next few weeks are crucial to determine whether ETH can be stable or if there are more disadvantages.
Ethereum drops wedges may indicate reversal
Ethereum lost more than 57% of its value, creating a challenging environment for the Bulls as sales pressure continues. ETH now trades below multi-year support levels, which has transformed into strong resistance. As long as Ethereum is still below the $1,900-$2,000 range, the Bulls will have difficulty recovering their momentum and keeping their bearish sentiment intact.
The entire cryptocurrency market reflects this weakness and encounters significant segments in the U.S. stock market. Worries about the global trade war and uncertainty surrounding President Trump’s policy have further fueled the sell-off of risky assets. Since the US election held in November 2024, the rise in macroeconomic volatility and uncertainty have lowered the market. Since September 2024, as the U.S. stock market reaches its lowest level, investors are still on the edge and question whether Ethereum is further remote.
Despite the bleak outlook, there is still some optimism. Da’an’s insights It shows that Ethereum has been consolidating since its massive decline and has formed a wedge-shaped trend pattern. If ETH bursts and maintains resistance, this bullish formation may lead to a reversal of the local trend.
To achieve this potential recovery, ETH must exceed the white area and recover $2,000. If this happens, the Bulls may start testing higher levels and resume growth for the broader market. However, the ETH/BTC ratio is still close to its multi-year low and has shown only a small elasticity in recent days. Continuous strength is needed before a true reversal is achieved.
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As Ethereum is still struggling, the next few weeks are crucial to determine whether this wedge breakout will lead to meaningful rally or downward trends that will continue.
Bulls about $1,900
Ethereum is currently trading at $1,900, and after several days of struggling below the crucial $2,000. The Bulls lost control and ETH is now at its lowest level since October 2023, reflecting wider market uncertainty and persistent bearish sentiment.
As macroeconomic volatility and fear of a trade war can seriously affect risky assets, Ethereum continues to face sales pressure, making it difficult for the Bulls to build momentum for recovery. ETH is increasingly holding below $2,000, the stronger the resistance at this level, bringing buyers out of the market.
To avoid deeper losses on Ethereum, the Bulls must recover the $2,000 mark as soon as possible and determine it as a new level of support. Breakthrough and staying above this threshold may trigger a recovery assembly, allowing ETH to test higher resistance regions. However, losing current levels will leave ETH vulnerable to another drop, which may retest support for $1,750 or less.
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The next few days will be crucial as the Bulls need to step in and defend current needs to prevent further shortcomings. If they don’t, Ethereum may expand its bearish trend to deeper territory.
Featured images from DALL-E, charts from TradingView
