Ethereum $1,900 Retest Could Decide Next Major Move – Is ETH Preparing For New Lows?

Overview

Ethereum is currently facing critical price levels that could determine its future trajectory. After experiencing significant volatility, the cryptocurrency’s ability to maintain its position above the $1,900 mark is under scrutiny, with analysts warning of potential new lows if it cannot reclaim higher ground.

Current Price Action

Ethereum recently dropped 1.4% as it retested a key price area for the second consecutive day. The cryptocurrency had previously reached a 10-month low of $1,747 but managed to bounce back over 15%, trading between $2,000 and $2,150. However, it failed to maintain the crucial $2,000 horizontal barrier and subsequently tested the $1,900 mark for the first time in a week. Early attempts to reclaim the $2,000 level were met with rejection, leading to a brief fall below that mark.

Analyst Ted Pillows emphasized the significance of the current price zone for Ethereum, noting that it has historically triggered major price movements. He stated that if Ethereum does not reclaim the $2,000 level soon, a complete retracement toward recent lows could be anticipated. Furthermore, market observer Crypto Busy pointed out that Ethereum is trading above a long-term support level. The recent price correction has brought Ethereum closer to a three-year rising support line, which could determine the next significant market move. The analyst cautioned that if the trendline breaks and weekly closes occur below $1,900, Ethereum’s market structure could weaken significantly.

The Macro Outlook for Ethereum

Trader AlejandroXBT provided insights into a potential macro outlook for Ethereum, suggesting that the cryptocurrency may still be in a prolonged correction phase that began around 2019-2020. He identified four phases in this macro structure: the pump, the correction, the shakeout, and the moon. According to AlejandroXBT, the initial phase marked a strong bullish move, but the rally following the 2022 bear market appears to be a counter-trend move within a broader corrective range instead of the beginning of a new bullish cycle.

He described Ethereum’s current range-bound behavior as indicative of distribution and consolidation rather than continuation. This interpretation suggests that a final shakeout phase may still be necessary to reset sentiment and liquidity before Ethereum can enter a new impulsive bullish cycle. AlejandroXBT anticipates a liquidity-driven move to the downside in the coming months, followed by a potential transition into a new bullish phase next year.

From author

The current situation for Ethereum highlights the cryptocurrency’s struggle to maintain critical price levels amid a volatile market environment. The analysis provided by various observers underscores the importance of the $1,900 mark and the potential consequences of failing to hold this support. As Ethereum navigates these challenges, its price movements will be closely monitored by traders and investors alike.

Impact on the crypto market

• Ethereum’s ability to hold above the $1,900 level is crucial for overall market sentiment.
• A failure to reclaim the $2,000 barrier may lead to increased selling pressure and further declines.
• The macro outlook indicates that Ethereum may still be in a corrective phase, affecting investor sentiment.
• Price movements in Ethereum could influence other cryptocurrencies, given its status as the second-largest by market cap.
• Analysts’ warnings about potential new lows could lead to cautious trading behavior among market participants.