Ethereum has shown signs of recovery from recent lows, sparking a debate among analysts about whether this move signals a sustained upward trend or merely a temporary bounce ahead of another downturn. The split comes as the crypto market remains sensitive to technical signals and broader sentiment shifts.
Ethereum price recovers, cautious sentiment remains
At the time of reporting, ETH is trading at $1,580.68, registering a 1.95% gain over the past 24 hours. Its daily trading volume stands at $19.35 billion, while the market capitalization has reached $190.76 billion—accounting for 9.17% of the total cryptocurrency market. As the largest blockchain for smart contracts and decentralized apps, Ethereum continues to be a central player in the digital asset ecosystem.
More Crypto Online, in a post on X (formerly Twitter), highlighted that Ethereum established a new low on Friday, suggesting a possible end to the third wave of its correction. The analyst argued that the current rebound could represent a fourth wave often seen before a fresh downturn. While some short-term improvement is evident, several experts remain skeptical about a major bullish reversal at this stage.
More Crypto Online emphasized that the recent rebound does not necessarily mark the end of Ethereum’s primary downward trend and currently appears to be a corrective move rather than a definitive turnaround.
According to this scenario, the first key resistance zone lies between $1,605 and $1,668. If buyers manage to push ETH above this range, the next targets are $1,823 and then $2,224. Nonetheless, many analysts view the current price movement as a technical correction rather than the onset of a strong rally.
Buyers step in on short-term structure
On the other hand, analysts using the Smart Money Concepts framework are painting a more constructive picture in the short term. They note that Ethereum dipped briefly below previous lows before bouncing sharply from the $1,670 to $1,690 demand zone. This price action is considered a “liquidity sweep” where selling pressure is absorbed and buyers regain control.
Glossary: The Smart Money Concepts approach is a technical analysis method that focuses on liquidity zones, supply-demand areas, and market structure, aiming to track activity from major market players.
Following the recent bounce, Ethereum has established a pattern of higher lows. Analysts suggest that if ETH can break through the $1,735 to $1,755 resistance zone, it would strengthen the bullish outlook. Short-term targets then become $1,750 and $1,800, with the primary target area seen between $1,830 and $1,850.
Support zone could be decisive for direction
The same analysis indicates that a previous long trade captured a move from $1,700 to $1,778—roughly an 780-point swing. However, the price has since pulled back and is now revisiting the $1,680 to $1,690 demand zone. Market watchers are closely monitoring whether this area will attract renewed buying interest in the near term.
If demand persists in this region, Ethereum could regain upward momentum, targeting the $1,830 to $1,850 band. Conversely, failure to surpass nearby resistance or a breakdown below key support could leave the recent rally as only a temporary reaction.
Ethereum’s price direction is significant not just for its own valuation, but for overall market sentiment. As the second-largest cryptocurrency by market cap, its performance has an outsized impact on the decentralized finance ecosystem, altcoins, and broader risk appetite across crypto markets.
