Ethereum is trading above $1700 after volatile weeks, as bulls now attempt to reclaim higher levels and turn resistance into support. Despite ongoing macroeconomic tensions and the ongoing trade dispute between the United States and China, markets have begun to absorb optimism with investors expecting progress in negotiations. This renewed sentiment has raised the value of risk assets such as Ethereum, which is showing early signs of a potential breakout.
Analysts are closely monitoring the current price movement of Ethereum, indicating a potential trend shift. Prominent analyst Dan provided a technical perspective on X, noting that Ethereum is trying to reclaim its previous horizontal support level around $1750. If successful, this will be the first time in months that Ethereum has regained a key support level after previously rejecting it and recording lower lows.
While Ethereum struggles to recover what it has lost, all eyes are on this critical level. A breakout above this level could lead to a renewed bullish wave in the altcoin market, reinforcing growing speculation that the worst correction wave may have already ended.
Ethereum bulls are trying to change the market structure
Ethereum has seen a notable rise, increasing by over 32% from its local low of $1,383. This recovery has brought Ethereum to a critical price level, where bulls need to hold and build momentum to break the broader bearish trend that has characterized most of 2024. A sustained rise above current levels may indicate a long-awaited shift in market structure, bolstering confidence that Ethereum is poised for an upward trend in the medium term.
Nonetheless, broader macroeconomic forces continue to weigh on investor sentiment. Ongoing trade tensions between the United States and China remain unresolved, with each new tariff threat adding more pressure on global supply chains. These geopolitical pressures threaten to dampen risk appetite, and any further escalation could hinder Ethereum's recovery. On the other hand, any diplomatic breakthrough could lead to a significant shift in investor sentiment across all risk assets, including cryptocurrencies.
Meanwhile, Ethereum must defend its current levels to maintain its upward momentum. Dan's analysis indicated that Ethereum is currently testing the $1750 level, which previously served as a key support. If Ethereum can reclaim this horizontal area, it will be the first time in months that Ethereum has regained a critical level rather than rejected it. Dan confirmed that daily closes above $1750 are ideal and will affirm its strength, potentially opening the door for a wider breakout.