Ethereum $1,900 Retest Could Decide Next Major Move – Is ETH Preparing For New Lows?
As most of the crypto market retests crucial levels, Ethereum (ETH) is attempting to reclaim a major horizontal area. Some market observers have warned that cryptocurrency could fall to new lows if the price doesn’t bounce soon. Ethereum Weekly Close On Sight On Thursday, Ethereum dropped 1.4% to retest a key area for the second consecutive day. After hitting a 10-month low of $1,747, the King of Altcoins bounced more than 15% to trade between $2,000 and $2,150 over the past few days. However, the second-largest cryptocurrency by market cap failed to hold the crucial $2,000 horizontal barrier on Wednesday and tested the $1,900 mark for the first time in a week. As most of the crypto market retests crucial levels, Ethereum (ETH) is attempting to reclaim a major horizontal area. Some market observers have warned that cryptocurrency could fall to new lows if the price doesn’t bounce soon. After attempting to reclaim the key psychological level in the early hours of Thursday, Ethereum was rejected toward the recent lows, briefly falling below it. Analyst Ted Pillows highlighted the importance of ETH’s current zone, as it has previously triggered major moves. To him, if the altcoin fails to reclaim the $2,000 area in the coming days, a full retrace toward the recent lows should be expected soon. Similarly, market observer Crypto Busy noted that the cryptocurrency is currently trading above a major long-term support. According to the post, the recent correction has sent Ethereum toward a three-year rising support line, which “will decide the next big move.” The analyst warned that “If the trendline breaks with strong weekly closes below $1,900, the structure weakens.” Therefore, ETH must hold its current levels in the coming days to avoid a weekly close below this level. Otherwise, its price could drop “into the next liquidity pockets around $1,600 and possibly $1,300, where the next historical support zones exist.” Is ETH’s ‘Real’ Bull Market Two Years Away? A trader shared a potential macro-outlook for Ethereum that suggests the cryptocurrency could still see another major shakeout. My thesis is that the major bullish move that began around 2019–2020 has transitioned into a large and prolonged macro correction, and that Ethereum has been consolidating within this broader corrective structure ever since. He outlined four phases for the macro structure: the pump, the correction, the shakeout, and the moon. The initial phase, which occurred between 2019 and 2021, marked “the true impulsive bullish move,” with strong trend expansion and increasing momentum. According to the market observer, the strong rally that followed the 2022 bear market appears to be a “counter-trend move within a broader corrective range” rather than a renewed bull market and the start of a new long-term cycle. As he explained, ETH’s range-bound behavior signals distribution and consolidation instead of continuation. “From this perspective, the apparent bull market that developed within the correction can be interpreted as a dead cat bounce, a technically strong bounce occurring inside a larger corrective structure,” he affirmed. Therefore, the current macro structure would suggest that a final shakeout phase could “still be required to fully reset sentiment and liquidity before Ethereum can transition into a new impulsive bullish cycle. Based on this, the trader anticipated a final liquidity-driven move to the downside in the coming months, followed by “the moon” phase, potentially next year, when “the structure suggests the conditions for a true long-term bullish continuation, with price discovery and expansion well beyond previous highs.” #CPIWatch
JUST IN: $326 billion asset manager Ric Edelman says 95% of the institutions that don't own Bitcoin & crypto are "going to allocate this year for the first time."
"A lot of folks are looking at the Clarity Act as the key pivot point. If this gets passed into law, then that will largely be seen by many as the bottom."
Spot Bitcoin volume is rising slower than futures, which means futures dominance is taking over the market again.
Right now, spot volume sits at just 7.18%. It is nowhere near the 10% I like to see for a healthy market.
When it is this low, it tells me there is zero real, long-term demand. Fake demand relies on futures loans, whilst real demand buys the actual asset on spot.
Looking at the maker volume data, people are buying, but they are buying directly from a massive player.
To me, it looks like someone has been aggressively building up heavy short positions at these exact levels.
We are building a giant pile of liquidity here.
When this range finally breaks, I believe it will be to the downside, and it will be an explosive move.
My bigger concern for this week is that we get an incredibly annoying, straight-line wick in both directions just to wipe everyone out.
If that happens, everybody loses.
If you look at the price vs volume history chart below, we had a very irregular volume candle on Sunday.
The bulk of that volume came in right above where the price currently sits, which points towards a bunch of positions being completely trapped.
These long straight lines upwards are just designed to make you panic and close your trade. In my opinion, these big spiky candles are actually super bearish because they just create loss for personal gain.
$178-$200 These are the levels you need to be watching.
$NVDA is currently the most aattractive mega cap in the market, considering the insane growth and leverage that the company has on the entire AI Industry.
Still growing faster than every other chipmaker, while also being the cheapest.
After wave 2 is completed, the next target is $308.
⚡️INSIGHT: GRAYSCALE NAMES 5 DEFI TOKENS WITH “REAL VALUE”
Grayscale listed $HYPE, $AAVE, $UNI, $SKY and $MAPLE for SOLID relative value based on fundamentals.
DeFi protocols have generated nearly $25 BILLION in fees since 2023, with $UNI and $HYPE standing out for returning almost 100% of earnings to holders.