The Can Solana reach 500 dollars?Ethereum market witnessed profit-taking activity after its recent rally, with ETH currently testing crucial support levels. The second-largest cryptocurrency by market cap shows increased volatility as traders assess whether this represents a healthy correction or the beginning of a more substantial downtrend.
ETH/USD pair breaks below psychological $1,800 level amid broader crypto market weakness
Price action slips under both the 100-hour SMA and critical trendline support
Fibonacci retracement levels suggest potential accumulation zones between $1,700-$1,750
Market sentiment remains cautious ahead of key macroeconomic data releases
Technical Breakdown: Understanding ETH's Current Position
After establishing a local top near $1,850, Ethereum entered a consolidation phase that turned into a more pronounced correction. The 50% Fibonacci retracement level (measured from the $1,723 swing low to $1,848 high) failed to hold as support, leading to increased selling pressure. The breakdown below the ascending trendline connecting higher lows since mid-April particularly concerns bullish traders.
The current price action shows ETH testing the 76.4% Fib level near $1,750, which coincides with previous resistance-turned-support from April's price structure. This zone represents a critical battleground between buyers looking for discounted entries and sellers capitalizing on weakening momentum.
Potential Scenarios: Where Could Ethereum Head Next?
Market participants should monitor two distinct scenarios developing on ETH charts:
Bull Case: A rebound from current levels that reclaims $1,785 could invalidate the bearish structure. Subsequent closes above $1,800 would suggest correction completion, potentially targeting the $1,850-$1,920 resistance cluster. Such a move would require improving market depth and positive flows into ETH spot markets.
Bear Case: Failure to hold $1,750 support risks triggering stop-loss orders that could accelerate declines toward $1,700. The $1,650-$1,680 zone represents the next significant demand area, where we previously saw institutional buying interest during March's consolidation phase.
Market Indicators Show Mixed Signals
Trading volume patterns reveal decreasing participation during this pullback compared to the preceding rally - typically a positive divergence during corrections. However, the derivatives market shows increased put option buying at $1,700 strikes, indicating some traders anticipate further downside.
MACD histogram shows slowing bearish momentum despite remaining below zero
RSI at 42 suggests neither oversold nor overbought conditions
On-chain data reveals stable ETH holdings across exchanges
Funding rates remain neutral after last week's positive bias
As always in cryptocurrency markets, traders should maintain disciplined risk management strategies during periods of elevated volatility. The coming sessions will prove crucial in determining whether Ethereum can maintain its broader uptrend structure or requires deeper consolidation before its next directional move.