After months of selling pressure, Ethereum shows potential for recovery, breaking out of a downtrend for the first time since December 2024. Analyst Ted Pillows indicates improving sentiment, and key trading levels are being tested. Trading remains below $2,000, but market watchers are hopeful for a bullish trend shift as ETH consolidates around $1,800.
Ethereum has spent months fighting off aggressive selling but is now starting to show signs of a recovery. Despite still trading under the crucial $2,000 threshold, bullish sentiment seems to be creeping back as traders defend critical demand zones. As the market waits for a significant rebound, Ethereum’s performance will be closely monitored; if these positive shifts continue, it may return to a more bullish trajectory.
The cryptocurrency market, particularly for Ethereum, has faced considerable strain throughout 2025. Ethereum has suffered from extended downturns and frequent rejections at resistance levels. But now, there’s a glimmer of hope. Analyst Ted Pillows pointed out that Ethereum has officially broken its downtrend for the first time since December 2024. This could be a sign that better days might just be ahead for ETH.
This recent breakout could indicate a substantial shift in market dynamics. Trading volume, which has previously flagged, appears to be recovering. As traders keenly watch whether ETH can maintain its upward momentum and settle above the $2,000 mark, the coming days are crucial. A successful break through this psychological barrier could ignite a broader rally in altcoins across the market.
Currently, Ethereum trades around $1,800, and it is firmly consolidating after a period of downward pressure. Right now, it remains more than 55% below its December 2024 highs, a significant gap. Yet, there are early indications of bullish patterns forming, particularly on lower time frames, hinting at a possible trend reversal on the horizon as it hangs near vital support zones.
This is a pivotal moment for Ethereum. While it is still trading within a tight range, the bulls need to gather steam to break past essential resistance levels to regain control over the price action. Up to now, the consolidation phase has created a foundation but a decisive move—either up or down—looms ahead, one that could shape ETH’s immediate future.
According to Pillows, this breakout is notably forward-looking compared to past attempts that were swiftly rejected. He argues that ETH is due for a burst to catch up with the broader market’s momentum. Bitcoin has been moving towards new highs while Ethereum has lagged. Should the current breakout stay strong, Ethereum could quickly push towards and potentially test the important psychological $2,000 level.
From a technical standpoint, Ethereum is trading at about $1,807.99 now and remains within a narrow range after bouncing back from its earlier April lows. The 4-hour chart shows it trading above critical support levels—both the 200-period simple moving average (SMA) layered at $1,700.49 and the 200-period exponential moving average (EMA) sitting at $1,783.99—which are being closely regarded as the asset attempts to solidify a bullish stance.
While the price remains somewhat turbulent, it looks like Ethereum is trying to form a base over the $1,780 area. Though the breakout above the downtrend line since December 2024 holds, a notable increase in trading volume during this consolidation seems to be absent, which often characterises markets waiting for a big move.
Trading below the significant $2,000 resistance area still presents challenges, but there’s a very gradual shift in momentum in favour of bulls. A breach of the $1,860 to $1,880 range could pave the way for a march towards the $2,000 mark. However, if Ethereum fails to maintain the 200 EMA support, it might find itself retracing toward $1,740 to $1,700, a demand zone that could offer some reprieve.
