Ethereum ($ETH ) begins May 2025 trading around $1,845, staging a notable recovery from its April lows. After enduring sustained bearish pressure in the early part of the year, ETH is now attempting to reclaim key resistance levels that could dictate its medium-term direction. While the market mood remains cautious, a number of technical signals are beginning to favor the bulls.
Weekly Chart: ETH Eyes Critical Fibonacci Levels
On the weekly timeframe, Ethereum is currently hovering near a major technical level—specifically, the 0.786 Fibonacci retracement drawn from its $1,097 low to the $4,105 cycle high. This region, around $2,075, has historically acted as a support and potential pivot zone during prior corrections.
Key Support Zone: $2,075 (0.786 Fib level)
Current Price: ~$1,845
Historical Context: This level has served as a springboard for rebounds in previous market cycles.
Bullish Scenario: Break Above $2,100 Could Trigger Further Gains
If Ethereum manages to close a weekly candle decisively above the $2,100 threshold, it would mark a significant bullish signal. Such a breakout would suggest momentum is shifting, potentially opening the path toward the next Fibonacci level at $2,508 (0.618 Fib).
Next Target: $2,508
Market Implication: A close above $2,100 may confirm a base formation and continuation of the rebound.
Bearish Risk: Breakdown Below $1,700 Could Spell Trouble
Despite recent gains, ETH remains vulnerable to downside risks. Should the price fail to hold above $1,700, bearish pressure could resume, dragging the token toward deeper support near $1,457. This would invalidate the short-term bullish setup and reinforce the broader correction trend.
Key Risk Level: $1,700
Bearish Target: $1,457 (historical support)
Conclusion: Cautious Optimism as ETH Tests Key Levels
Ethereum remains in a broader correction phase, but signs of a potential bottom are forming. Traders and investors should closely monitor the $2,100 resistance and $1,700 support levels, as they will likely determine whether ETH extends its recovery or faces renewed selling pressure.
