Ethereum is trading below resistance after a 21% drop, despite strong fundamentals. Analyst Ted Pillows highlights Ethereum’s dominance in stablecoin transactions and DeFi. Ongoing macroeconomic pressures contribute to market volatility, but upgrades could present long-term buying opportunities. Bulls aim for a breakout above $1,800 amidst risks of further declines below $1,550.
Ethereum is currently trading below significant resistance levels after experiencing weeks of substantial selling pressure and poor performance. The asset has fallen more than 21% since breaching the critical $2,000 psychological threshold, leading to increased uncertainty among short-term investors, despite its strong on-chain fundamentals remaining intact.
Analyst Ted Pillows suggests that Ethereum is trading close to bear market lows, yet the network’s fundamentals appear stronger than ever. Ethereum processes over 95% of stablecoin transactions and maintains the highest Total Value Locked (TVL) across Decentralised Finance (DeFi) and Real World Asset (RWA) protocols. Additionally, it is the only altcoin with an approved spot ETF in the US, and there are upcoming upgrades aimed at enhancing speed and reducing transaction costs.
The persistent price suppression raises speculation about whether this is merely market sentiment or a potential manipulation to eliminate weak investors before a market reversal. Many long-term holders view the current downturn as a strategic accumulation phase, while others brace for further declines. Ethereum faces critical market tests amid increasing global economic uncertainties, particularly due to the ongoing tariffs and tensions between the US and China, which contribute to investor hesitance in high-risk assets like cryptocurrencies.
Despite the surrounding uncertainty, analysts maintain that Ethereum’s fundamentals remain strong. It is a key component of the DeFi ecosystem, commanding over 95% of stablecoin transactions and leading in tokenisation of real-world assets. The impending protocol upgrades are also set to improve scalability and reduce costs, indicating a potential long-term purchasing opportunity at the current valuation.
Currently trading at approximately $1,590, Ethereum has shown fluctuating price activity within the $1,500 to $1,700 range. Bulls are focused on breaking the resistance around $1,800, represented by the 200-day Moving Average (MA) and Exponential Moving Average (EMA). A successful reclamation of this level could signify a recovery phase for Ethereum.
However, traders remain cautious of downside risks. Should Ethereum fail to maintain its current support levels and drop below $1,550, it could lead the asset toward the $1,500 mark. The sector is currently locked in a competition for dominance within the $1,500 to $1,800 corridor, with traders eagerly awaiting a breakout that will determine the next significant trend.
