Ethereum [ETH] $ETH could finally free itself from its prolonged stagnation phase. After breaking its persistent downtrend for the first time since February, ETH is now firmly above $1,600 and sets its sights on the psychological level of $2,000.

At the same time, the Total Value Locked (TVL) on Ethereum Layer 1 has risen to $190 billion – its highest in months – signaling a return of investor confidence in the leading altcoin.

Ethereum has officially broken its multi-month downtrend. The breakout, clearly marked with a yellow arrow, is the first major technical shift for Ethereum since February 2025.

ETH is now holding above the crucial support of $1,600 and, if this level holds, analysts suggest that a push towards the $2,000 level could be on the horizon.

As ETH remains above $1,600 after its recent breakout, traders are targeting the $2,000 resistance as the next major hurdle.

A successful breach could pave the way towards $2,500-$3,000 in the medium term. However, the support at $1,600 remains crucial; a drop below this level could signal a potential trend reversal.

Upcoming macroeconomic events, particularly any indications of rate cuts by the Federal Reserve by June, could influence ETH’s trajectory.

A declining inflation increases the odds of such cuts, potentially boosting risk assets like Ethereum. Notably, a wallet linked to the Ethereum Foundation recently transferred 1,000 ETH to Kraken, raising concerns about a possible sale.