Ethereum is trading above $1,600, having faced increased volatility due to global trade uncertainties. The critical support level is at $1,546.55, which may provide a foundation for recovery if held. Recent gains have increased optimism, but breaking above the $1,875 resistance is essential for further bullish momentum. The market outlook remains cautious due to macroeconomic factors.
Ethereum’s market performance has been turbulent, trading above the $1,600 mark amid high volatility linked to global trade issues. US tariff measures, primarily from President Donald Trump, have significantly shaken investor sentiment, causing the cryptocurrency market to struggle for direction. Despite ongoing selling pressure, Ethereum is attempting to stabilise, but the risk of a continuing downtrend remains a concern. For a meaningful recovery, it must reclaim critical price levels soon.
On-chain metrics from Glassnode indicate a crucial support level for Ethereum currently sits at $1,546.55, where significant accumulation of over 822,440 ETH occurred by whale investors. This support might provide the foundation needed for a price bounce if tested again, as historically, heavily accumulated zones attract renewed buying interest. Therefore, maintaining this support while pushing into higher resistance will be essential for signalling bullish sentiment.
Recently, Ethereum has witnessed a 20% increase since last Wednesday’s low near $1,380, injecting optimism amongst investors. As it trades near key resistance levels, it appears to be forming a baseline for a potential breakout. However, uncertainties persist in the global macroeconomic landscape, overshadowing the market outlook. Activating a temporary risk-on sentiment from Trump’s recent tariff pause announcement has contributed to this surge, yet lingering trade tensions have kept investors wary.
According to analyst Ali Martinez, $1,546.55 remains a pivotal support level that could dictate Ethereum’s near-term trajectory. Should Ethereum hold above this threshold, it may drive the market toward a strong continuation rally, potentially leading to regained confidence in altcoins. Conversely, Ethereum continues to face challenges, with the next moves heavily influenced by market momentum and geopolitical factors.
Currently trading at $1,630, Ethereum set a recent 4-hour high near $1,691. Although bulls are attempting to regain momentum, a secure breakout above key resistance levels is imperative for a bullish recovery. Specifically, reclaiming the $1,875 level, aligning with the 200-day moving averages, will be vital. If this resistance isn’t overcome, ETH may retest the $1,500 support area or even lower. Hence, defending the $1,600 mark is critical to avoid another selloff, as Ethereum seeks to build strength against macroeconomic challenges ahead.
