Ethereum has been showing signs of recovery after a significant decline from the $2,000 level, with price action now gaining some traction on its bounce off a long-term support level.
Recent price action shows that ETH/USD formed a local bottom around the $1,665-$1,716 area, corresponding to the 0.618-0.764 Fibonacci extension levels of the previous drop. The digital asset has since staged a notable bounce, currently trading around $1,879.
The chart displays a potential reversal pattern forming after ETH found support at deeper Fibonacci levels. Price has rebounded significantly from these lows, suggesting that buyers stepped in at technical support zones. This bounce has pushed Ethereum back above the psychologically important $1,800 level, which could serve as immediate support on any pullbacks.
ETHUSD Technical Analysis
Looking at the moving averages, we can observe that the 100-period MA (blue line) has crossed below the 200-period MA (red line), forming a bearish crossover that typically signals downward momentum. However, current price action shows Ethereum challenging this bearish indicator as it attempts to climb back above both moving averages.
The stochastic oscillator (14, 3, 3) is currently showing bearish momentum as it falls from overbought conditions. This technical indicator suggests selling pressure has been increasing in recent trading sessions, despite the ongoing recovery. If the stochastic continues its downward trajectory without entering oversold territory too quickly, it could indicate sustainable downside potential.
Meanwhile, the MACD (12, 26, close) displays a potential bearish crossover forming, with the MACD line beginning to curve downward toward the signal line. This potential crossover could confirm the shift in momentum if it materializes in upcoming sessions.
Key Ethereum Levels to Watch
Key resistance levels to watch include the 0 Fibonacci level at approximately $1,928, which coincides with the previous local high. A decisive break above this level could open the path toward $2,000, a significant psychological resistance. Further resistance can be found at the recent swing high of $2,130, which would need to be cleared for a resumption of the longer-term uptrend.
On the downside, immediate support rests at the 0.5 Fibonacci level around $1,756, with stronger support at the 0.618 level near $1,716. The recent low at approximately $1,665 (0.764 Fibonacci level) represents a critical support zone that bulls would want to defend to maintain the recovery narrative.
Technical traders should pay close attention to how price behaves at the current 0.382 Fibonacci support. A rejection here could lead to a retest of lower support levels, while a convincing break above could accelerate the recovery toward the $2,000 region.
ETHUSD Price Outlook
From a market structure perspective, Ethereum is currently attempting to transition from a short-term downtrend to a potential uptrend. The higher low formed recently compared to the March lows suggests that buyers are becoming more active at progressively higher levels.
Given the technical setup, Ethereum appears to be at a critical juncture. If the current bullish momentum persists and ETH can close decisively above the $1,928 level, we could see a retest of the $2,000 resistance.
However, traders should remain cautious as the broader trend indicators still show mixed signals, with the moving average crossover suggesting underlying bearish pressure that hasn’t fully dissipated.
