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Ethereum (ETH) is currently trading around $1,679, up 1.15% on the day. But don’t pop the champagne just yet — there’s more going on under the hood than meets the eye.
Let’s dive into the chart action and figure out if ETH is staging a real comeback or just faking us out with a classic “dead cat bounce.”
Looking at the chart, Ethereum has suffered a heavy dump in early April, falling off a cliff from near $2,100 all the way down to the $1,370 range. Ouch.
Since that nosedive, ETH has shown some signs of life, climbing its way back to the $1,679 level. However, it hasn’t yet reclaimed any key resistance zones in the $1,750–$1,850 range — which are heavily marked in red and might as well say: “You Shall Not Pass.”
Support and Resistance Levels
Key Resistance Zones (Marked in Red):
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$1,750 – $1,850: Former support turned resistance. Expect strong sell pressure here. If ETH breaks above this level, that’s your bull confirmation.
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$1,700: Psychological resistance and horizontal supply. Keep an eye here for rejection wicks and volume spikes.
Key Support Zones (Marked in Green):
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$1,580 – $1,630: ETH is currently holding above this zone. Buyers seem to be stepping in here.
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$1,480 – $1,520: Critical support zone. ETH has bounced from here multiple times — aka the “HODL line.”
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$1,370 – $1,420: Last line of defense before things get medieval. A break below this zone could trigger a flush to sub-$1,200 levels.
Volume & RSI Analysis – Bulls Trying, Bears Napping
Volume is relatively tame, but the bounce from support zones has been accompanied by decent buy-side volume, suggesting some conviction — or at least desperate dip-buying.
The RSI (14) is currently sitting around 57.21, with recent peaks in the overbought zone (above 70). This suggests momentum is returning, but not overwhelmingly bullish just yet.
Tip: Don’t blindly FOMO at RSI 70+. Wait for a breakout confirmation above key resistance — or better yet, buy the dip if RSI resets near 30.
Trading Tips – Because the Market Doesn’t Care About Your Feelings
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Play the Range: Until ETH breaks above $1,700 with solid volume, treat this like a range-bound market. Buy support, sell resistance. Easy math, hard psychology.
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Breakout Watch: If ETH can close a few candles above $1,750 on high volume — it’s go time. That could lead to a retest of the $1,850 and potentially higher.
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Stop-Loss Smart: Set tight stops if you’re long — say around $1,590 — just under current support. If that cracks, the next bus stop is much lower.
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RSI Divergences Matter: Look for bullish divergence near the $1,480 level if price revisits that zone. It’s been a reliable bounce area.
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Don’t Marry Your Bags: If the market dumps again, don’t go down with the ship. Exit and re-enter lower — ETH will still be there when you get back.
In Summary: ETH’s Trying to Get Up… But the Floor Is Slippery
Ethereum’s recent recovery looks promising, but the real test lies ahead. Until ETH breaks and holds above $1,700–$1,750, we’re still stuck in “cautiously optimistic” territory.
Is this a trend reversal or just a bull trap disguised as hopium? That’s the million-dollar question.
So trade smart, stay hydrated, and remember: even if ETH goes to the moon, don’t forget to take profits on the way up.
