Ethereum bounced back on Monday, rising above $1,600 as investors came back after one of the year’s biggest crypto selloffs. The cryptocurrency gained 1.3% in the past 24 hours to about $1,661, doing better than Bitcoin, which stayed mostly flat.
This recovery comes after a rough week where major cryptocurrencies saw double-digit losses. Bitcoin fell over 14%, Ethereum dropped about 15%, and XRP lost around 13% as investors responded to global uncertainty. Sentiment improved once Bitcoin moved back above $63,000, which helped steady the crypto market.
Traders say that easing geopolitical worries and a rush to cover short positions helped Ethereum recover. As prices rose, those betting against ETH had to buy back in, which added more buying pressure and sped up the rebound.
The better mood followed comments from U.S. President Donald Trump, who hinted at progress on a possible diplomatic deal with Iran. This eased some of the worries that had been affecting financial markets recently.
Analysts Debate ETH’s Next Move
Despite the rebound, analysts remain divided on whether EthEven with the recent bounce, analysts are still split on whether Ethereum https://coinmarketcap.com/currencies/xrp/has found a lasting bottom.sh development after the TD Sequential indicator generated a buy signal on Ethereum’s three-day chart. Historically, this technical indicator has been used to identify trend exhaustion and potential reversal points following sharp market declines.
Still, some market watchers are not sure the recovery will last without setbacks.
Key levels traders are watching include:
- Immediate support near $1,600.
- Initial resistance around $1,700.
- Major resistance between $1,750 and $1,800.
- Psychological target at $2,000.
- Downside risk zone near $1,500.
Analyst Ted Pillows believes sellers are still in control since Ethereum hasn’t regained important price levels lost earlier this year. He says that a clear move above the $1,750 to $1,800 range is needed to confirm a stronger upward trend.
For now, many traders see this rally as just a relief bounce, not the start of a full market recovery.
Can Ethereum Reach $2,000 This Week?
Technical signals show that Ethereum is at a key turning point. On the four-hour chart, buyers managed to hold the $1,600 support area, which stopped a bigger drop and helped prices steady.
Trading activity has picked up a lot. Ether derivatives volume jumped 20.68% to $46.89 billion, showing more people are trading again. Meanwhile, open interest fell 0.65% to $24.22 billion, which means some traders decided to lower their leverage even as prices recovered.
Momentum indicators offer some cautious optimism. The Relative Strength Index (RSI) moved up to around 48, showing some strength but not yet overbought. At the same time, the MACD histogram turned positive, hinting at growing short-term bullish momentum.
For EtheFor Ethereum to reach $2,000, buyers need to push past resistance at $1,700 and then break through the key $1,800 level. If that happens, it could bring in new investors and boost market confidence.sely, if ETH falls back below $1,600, bearish pressure may intensify and expose the cryptocurrency to another decline toward the $1,500 support area. For now, Ethereum’s recovery remains intact, but traders are watching closely for confirmation that a broader trend reversal is underway.