Ethereum is currently undergoing a consolidation and retest phase after a sharp decline that began in February. We observe from the daily timeframe that the price has stabilized above the $2,000 area and has started to form gradually rising lows. The price is now facing strong resistance at the $2,385 areas (the last peak on the chart). The positivity lies in the stability of the "volume" and the beginning of a convergence of price averages, which indicates an upcoming price explosion, but it is still under pressure from the general "downtrend" on the medium term.
• Potential price targets
• First target: $2,480 (a classic resistance area and a test of the previous peak).
• Second target: $2,750 (the area to fill the previous price gap).
• Strategic target: $3,200 (returning to levels before the major drop in February).
• Expected time frame
• First target: within (7 to 14 days) if trading remains above $2,280.
• Second target: within (30 to 45 days) if general market liquidity improves.
• Strategic target: (end of Q2 2026) provided that the current historical low is not broken.
• Controversial scenarios
• Positive scenario: Breaking the level of $2,400 with high liquidity daily closing opens the door for a significant jump towards $2,850 very quickly due to the liquidation of short positions (Short Squeeze).
• Cautious scenario: the current volatility requires monitoring key support areas at $2,200 as the first support, and $2,050 as the last defense line; breaking them means entering a dark tunnel.
• Buying and selling areas
• Buying: the ideal area currently is $2,280 - $2,310, or after confirming the break of $2,400.
• Selling: Reducing positions at $2,480, and full selling for those looking for quick profit at $2,700.
• Golden advice for traders
"Do not chase green candles, but wait for support testing." The price is currently in a "confusion" area; therefore, do not go all in with your entire capital. Make your entry in batches, and always place a stop-loss order below $2,150 to secure your portfolio from any sudden fluctuations in Bitcoin that could pull Ethereum with it.
• What will happen in the coming days
We expect continued sideways fluctuations leaning towards a slight rise. The currency will experience repeated attempts to break the barrier of $2,385. If the weekly close is above this figure, we will see strong momentum. Otherwise, the price will continue to oscillate to gather as many contracts as possible before the big move.
