- Ethereum’s price has re-entered a crucial support zone between $1,490 and $1,740, echoing patterns from its 2023 bullish reversal.
- ETH remains dominant in DeFi and stablecoin activity, holding 95% of volume and the highest total value locked in the sector.
- It is the only altcoin with a US-approved spot ETF and is positioned for scalability upgrades to enhance speed and reduce costs.
Ethereum is getting near an important support level, as its price has recently fallen into a historically sturdy demand zone. As market conditions become more constrained, investors are watching closely for confirmation of an upward bounce or greater pullback.
Price Action Near Bear Market Lows
Ethereum was trading at $1,608.49 at the writing of this report, up by 1.70% from the last 24 hours but down by 2.76% over the last week. The daily chart indicates a steeply downward movement after the consolidating and volatile action. ETH has dropped into the significant support level ranging from $1,490 to $1,740.
Source: Ted Pillows
This same area acted as a strong base in mid-2023, preceding a rally that saw ETH climb above $4,000 in 2024. A notable wick briefly pierced below $1,490, but price has since recovered into the range. This movement suggests the potential for a liquidity grab—a common setup ahead of a reversal.
Traders are now watching for signs of strength. If bulls manage to maintain support above $1,490, the area could become a springboard for recovery. On the other hand, a daily close below this level may open the door to further declines, possibly toward support levels under $1,200.
Fundamental Strength Amid Technical Weakness
Despite current price weakness, Ethereum’s fundamental indicators remain robust. According to TedPillows on X , Ethereum continues to lead across several critical metrics. It accounts for 95% of all stablecoin transaction activity and maintains the highest total value locked (TVL) in the decentralized finance (DeFi) sector.
Ethereum is also at the forefront of real-world asset (RWA) integration. Additionally, it is the only alternative cryptocurrency with a spot ETF approval in the United States, adding to its institutional appeal.
Upcoming network upgrades are aimed at improving scalability and cost efficiency. These technical improvements could play a role in restoring confidence and possibly attracting long-term capital back to the asset.
Market Sentiment and Historical Patterns
Analysts are referencing historical valuation models to interpret current market conditions. Crypto analyst ali_charts also noted that ETH has now dropped below the lower MVRV price band. Historically, this zone has presented some of the best long-term buying opportunities.
While the market waits for clear confirmation, many are looking for volume spikes and strong reactions at support edges as potential indicators. These events, combined with historical support zones and fundamental developments, put Ethereum at a crucial juncture.
With both technical pressure and fundamental strength in play, Ethereum’s next move could shape broader sentiment across the altcoin sector in the weeks ahead.
