Ethereum Gains 32% Flipping Resistance to Support at $1,700

Ethereum has recently shown signs of stabilizing above critical support levels, particularly around $1,700, after a period of volatility. This stabilization is crucial for the cryptocurrency as it attempts to shift from a bearish to a bullish trend. Top analyst Daan noted a significant development: Ethereum is flipping a previous horizontal resistance level into support, a move that has not been achieved for months. This change indicates a potential strengthening of ETH’s market dynamics, as the asset is now defending critical zones rather than consistently rejecting resistance and making lower lows.

However, the path to a full recovery is not without challenges. Global macroeconomic uncertainties and tensions between the US and China continue to pressure risk assets, including cryptocurrencies. For Ethereum, a daily close above key resistance levels could pave the way for a more decisive upward move. Conversely, failure to do so could leave it vulnerable to further consolidation or downside pressure.

Ethereum’s recent recovery has been impressive, gaining over 32% from its local low of $1,383. Currently trading above $1,700, ETH faces a crucial test: holding these levels to shift its longer-term bearish price structure into a more bullish trend. This stabilization, if sustained, could mark the start of a larger reversal. However, broader macroeconomic risks, such as the ongoing conflict between the US and China, continue to loom, potentially disrupting global supply chains and affecting risk assets like Ethereum.

Daan’s technical analysis highlights a major shift in ETH’s behavior. For the first time in months, Ethereum is flipping a previous horizontal resistance zone back into support—a sign of strengthening market dynamics. Daan suggests closely monitoring the $1,750–$2,100 range, as a firm hold above this area would signal a significant improvement in ETH’s structure. A daily close above $1,750 and gradual consolidation within this key range would position Ethereum for a potential breakout toward higher levels in the coming months.

Currently, Ethereum is trading at $1,790, maintaining its position above the critical 4-hour 200 EMA. This technical level has acted as strong support in recent days, providing bulls with a foundation to build momentum. Holding above $1,700 is crucial to maintain the bullish structure that has started to form after weeks of volatility and selling pressure. To confirm a strong recovery and shift into a sustained uptrend, ETH must reclaim the $2,000 psychological level. A decisive break and hold above $2,000 would likely attract renewed buying interest and could open the door for a move toward higher resistance zones. However, without a strong catalyst, bulls could struggle to maintain upward pressure in the short term.

On the downside, losing the $1,700 support would signal growing weakness and likely invite further selling. A break below this zone could send Ethereum back into the $1,500 region, reigniting concerns of a prolonged consolidation or deeper correction. For now, the market remains cautiously optimistic, but all eyes are on whether bulls can build enough momentum to reclaim higher ground soon.