Ethereum showed signs of recovery by reacting from the bottom levels after the last decline. However, analysts are divided on whether this move is the beginning of a permanent uptrend or a short-term bounce before a new pullback.
Price recovered, cautious outlook maintained
ETH is trading at $1,580.68 at the time of writing. The daily trading volume of the asset, which has increased by 1.95 percent in the last 24 hours, is 19.35 billion dollars and its market value is 190.76 billion dollars. Ethereum accounts for 9.17 percent of the total cryptocurrency market. Ethereum stands out as one of the largest blockchain networks used for smart contracts and decentralized applications.
In its evaluation on X, More Crypto Online stated that the Ethereum price hit a new bottom on Friday and the third wave of decline may have been completed. According to the analyst, the ongoing recovery may be the fourth wave seen before a larger downtrend. Therefore, although there is an improvement in the short-term outlook, there are those who find the overall picture still weak.
More Crypto Online emphasized that the current rise does not indicate that the main downward trend has ended, and that the movement is considered a correction for now.
In this scenario, the first resistance zone lies between $1,605 and $1,668. If buyers break above this range, the $1,823 and $2,224 levels are watched as the next resistance areas. However, some analysts think that the current move indicates a technical correction rather than a strong bullish start.
Short-term buying interest came to the fore
Analysts using the Smart Money Concepts approach draw a more constructive short-term picture. Accordingly, ETH quickly recovered from the demand zone of $ 1,670 and $ 1,690 after falling below the previous lows for a short time. Such moves are considered liquidity clearing, where selling pressure is met and buyers take control again.
Mini dictionary: Smart Money Concepts is known as a technical analysis approach that examines liquidity areas, supply and demand regions and market structure where major players are thought to leave their mark on price movements.
Following this reaction, a structure of higher lows emerged in Ethereum. Analysts state that exceeding the $1,735 to $1,755 resistance zone could strengthen the positive outlook. In this case, while $1,750 and $1,800 are monitored as intermediate targets, the main target zone is between $1,830 and $1,850.
Support zone can be decisive in determining direction
In the same evaluation, it was noted that the previous long position produced a move of approximately 780 points as ETH rose from $1,700 to $1,778. It was stated that the price later retreated and returned to the demand zone between 1,680 and 1,690 dollars. Whether this area will attract buyers again is being closely monitored in the short term.
It is evaluated that if the buying interest is maintained in this region, Ethereum may regain momentum towards the 1,830 to 1,850 dollar band. On the other hand, failure to overcome nearby resistances or loss of support levels may cause the recent rise to remain a temporary reaction.
Ethereum’s direction matters not only for its own price, but also for broader market perception. The performance of the asset, which ranks second in terms of market value, may have an impact on the decentralized finance ecosystem, altcoins and general risk appetite.
