Ethereum has been showing signs of recovery after a significant downtrend, with price action suggesting a potential shift in momentum. The digital asset recently rebounded from support levels around $1,400, forming what appears to be the beginning of a reversal pattern on the short-term chart.
ETH/USD has established a notable bounce from the $1,400 support area, surging back up to current levels around $1,608.65. This rebound has brought the price into a key resistance zone between $1,600-$1,650, which previously served as support before the breakdown.
This constitutes a double bottom formation with the neckline at the $1,600 zone seeing a break higher, suggesting confirmation that the uptrend is about to follow. The price has formed higher lows since the recent bottom, indicating growing bullish pressure, though it remains below the major moving averages.
ETHUSD Technical Analysis
The chart shows that Ethereum is currently testing the 100-day moving average from below, with the 200-day moving average positioned higher around the $1,800 level. The space between these two major moving averages has been narrowing, suggesting diminishing momentum in the longer-term downtrend.
The stochastic oscillator is approaching overbought territory, currently reading around the 80 level. This suggests that the short-term buying momentum may be losing steam and could potentially signal a pullback. However, the indicator has not yet shown clear bearish divergence, keeping the door open for further gains if price can hold above the $1,600 level.
Meanwhile, the MACD indicator has recently crossed above its signal line and moved into positive territory, generating a bullish signal. The histogram bars are gradually increasing in height, indicating strengthening upward momentum. This positive MACD crossover supports the case for continued upside potential in the near term.
Ethereum Price Outlook
If Ethereum can maintain its position above the 100-day moving average and the $1,600 psychological level, we could see a continued move toward the next significant resistance around $1,800, which coincides with the 200-day moving average. A decisive break above this level would significantly strengthen the bullish case and potentially open the path toward the $2,000 psychological barrier.
On the other hand, if the current resistance zone proves too strong, ETH/USD could experience a pullback toward support levels at $1,500 or even retest the recent lows around $1,400. The stochastic indicator’s position near overbought territory supports the possibility of a short-term correction before any sustained upward movement.
The overall market structure shows Ethereum attempting to form a higher high after establishing a higher low. This potential shift in market structure could signal the early stages of a new uptrend if sustained. The highlighted trading range on the chart between approximately $1,550 and $1,650 appears to be a consolidation zone where bulls and bears are battling for control.
Traders should watch for a decisive break above the $1,650 level, which would strengthen the case for continued upside toward $1,800 and potentially $2,000 in the coming weeks. Conversely, failure to break through current resistance could lead to a retest of lower support levels before another attempt higher.
Overall market sentiment seems to be the major driver of price action these days, even in the crypto sector, as traders are keeping close tabs on global trade developments. Trump’s decision to impose higher tariffs on China while also announcing a 90-day delay in tariffs to other major trade partners could create a complex backdrop in the days ahead.
