Ethereum Tests Breakout From Downtrend But Struggles To Hold $1,600
Can Ethereum Maintain Its Momentum?
Ethereum bulls were briefly celebrating as the price finally pushed past its multi-month descending trendline. But as quickly as the breakout began, ETH slipped—once again testing the $1,600 support zone. So, is this just a false start, or the first signs of a new rally?
Let’s dig into the latest market moves and what analysts are watching closely.
Ethereum Tries to Shake Off Downtrend
Over the weekend, the broader crypto market saw a nice little recovery. Bitcoin finally closed above the $85,000 level again, while Ethereum jumped over 5% to briefly reclaim $1,640 and even tapped $1,658 in the early hours of Monday.
That breakout looked promising.
According to analyst Ted Pillows, Ethereum had been stuck in a multi-month downtrend since early February, with price consistently rejecting from the same descending resistance. Monday marked the first real attempt to break above it.
- ETH previously failed at this level three times
- The last rejection fueled a dip below $1,400 earlier this month
- The April rally sparked hopes of a sustained breakout
But just as momentum started building, Ethereum faltered below $1,600 again.
The $1,600 Level Is Now the Battleground
ETH’s quick drop back into the $1,570–$1,580 range has traders on edge. While the breakout was valid technically, holding that $1,600 support level is crucial for any chance of continuation.
If Ethereum can reclaim that level quickly, analysts expect another test of $1,700–$1,800. However, if it fails again, the risk of falling back toward $1,500 or even $1,400 looms large.
Carl Runefelt, another popular crypto analyst, said Ethereum could go “absolutely parabolic” if the current breakout holds, targeting as high as $3,000. But there’s a catch…
ETH Needs More Than Just Momentum
A breakout is one thing. Follow-through is another. According to Ali Martinez, Ethereum’s real challenge lies in overcoming the massive supply wall at $2,330.
That level isn’t just psychological—it’s backed by on-chain data showing more than 12.6 million wallets holding ETH purchased in the $2,330 range. That’s serious resistance, and it could take significant volume and market confidence to push through it.
Until that happens, Ethereum might remain stuck in a wider consolidation pattern.
What’s Next for ETH?
Here’s what traders are watching now:
✅ Bullish Scenario:
- ETH reclaims $1,600 and quickly moves above $1,650
- Volume picks up, sending ETH to test the $1,700–$1,800 resistance range
- A close above $2,000 sets the stage for a run toward $2,330
❌ Bearish Scenario:
- ETH fails to hold $1,580 and continues sliding to $1,500
- Weak bounce from support sends it back to $1,400 or even retests 2022 lows
- Market-wide sentiment stays cautious amid macro uncertainty and tariff tensions
Is the Bottom In?
There’s growing debate around whether Ethereum has bottomed out this cycle.
Some analysts point to ETH retesting its 2018 highs during this month’s correction, calling it a historic support zone. Others argue that without a strong breakout backed by volume, we’re just seeing another temporary bounce.
Still, ETH has held up relatively well considering the pressure from:
- A stronger Bitcoin dominance surge
- The market’s risk-off attitude amid trade war headlines
- ETF hype focused more on BTC than ETH
So, it’s still early to call a confirmed trend reversal, but we’re inching closer to that make-or-break moment.
Final Thoughts: Patience Is Key
Ethereum is at a crossroads. It’s flirting with a trend reversal, but the market wants to see conviction—not just candles popping up.
The $1,600 level has become the short-term battleground. Lose it, and bearish sentiment returns fast. Hold it, and ETH might finally get the runway it needs to make another serious move toward $2,000 and beyond.
So far, Ethereum has the potential—but now, it needs the power to follow through.
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