Ethereum Is Testing Key Support on the ETH/BTC Chart – A Parabolic Move Could Be Next
Ethereum experienced one of the most chaotic trading days in its history last Monday, as it fell more than 30% in less than 24 hours as fears escalated in the U.S. trade war. But the market rebounded quickly after President Trump announced negotiations with Canada and Mexico, leading to a rapid recovery of crypto assets.
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Despite this rebound, Ethereum is still much weaker than other altcoins, raising concerns about how long this underperformance will last. Investors are paying close attention to price action as ETH continues to trade at historically low levels relative to Bitcoin and other altcoins.
Top analyst Carl Unulefelt shared a technical analysis on X that shows that Ethereum is maintaining key levels of support on the ETHBTC chart. This suggests that ETH may be at a turning point, and if the bulls intervene, there may be potential recovery opportunities. However, if this level is not maintained, further disadvantages may be indicated.
Ethereum is behind Its peers, emotions are still chaotic, and market participants are waiting to clearly confirm the direction of the trend. Will ETH eventually start catching up, or will the other leg still be on the table? The next few weeks will be crucial.
Records cleared Ethereum faces uncertainty
Ethereum struggled after one of the most brutal clearing activities in crypto history, with the market vanishing more than $8 billion from the market between Sunday night and Monday. ETH is one of the toughest assets hit, and the price action looks weak and uncertain compared to Bitcoin. This has attracted the attention of analysts who are worried that Ethereum’s poor performance will continue.
However, top analyst Carl Ununefelt remains optimistic. he Shared technical analysis on Xreveals that Ethereum maintains a critical level of support on the ETHBTC chart around 0.028. Runefelt believes that if Eth bounces from this level, it could trigger a huge parabolic move, marking the beginning of the long-awaited Altseason.
Ethereum has lagged behind BTC since the end of 2021, and has not regained its dominance despite multiple market rally. While Bitcoin continues to flirt at its highest all-time high, ETH is far from its previous peaks, and many traders are now questioning whether Ethereum can recover its strength.
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Currently, Ethereum is still at a level of composition or disruption and maintains key support, but stress-building. If ETH manages to surge from the region, it can lead to strong recovery and transfer of market sentiment. However, if support is not held, it may mean further disadvantages.
Can the bulls regain power?
After testing two key moving averages, Ethereum traded at $2,780 – the 200-day moving average was $2,482 and the 200-day exponential moving average was $2,288. These indicators have been important long-term support levels since July 2020, confirming that despite recent volatility, the macro trends in Ethereum remain intact.
To reverse the short-term bearish trend of Ethereum, the Bulls must regain their $2,800 mark and support it. This level is a psychological and technical barrier that can prompt the power of renewal. The next key step is a push over $3,000, as breaking this resistance will shift sentiment from bearish to bullish and trigger a shift into the key supply zone.
If Ethereum fails to recoup these levels, the market may see another wave of sales pressure pushing ETH toward lower demand areas. However, historical trends show that when ETH holds above these moving averages, it often leads to strong gatherings.
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Investors are watching closely to see if Ethereum can recover and rebuild bullish momentum. A breakthrough of more than $3,000 will set the stage for a higher level of resistance and could lead to major rally in the coming months.
Featured images from DALL-E, charts from TradingView
