Ethereum $1,900 Retest Could Decide Next Major | Crypto News
As most of the crypto market retests essential ranges, Ethereum (ETH) is trying to reclaim a major horizontal space. Some market observers have warned that cryptocurrency may fall to new lows if the price doesn’t bounce soon.
Ethereum Weekly Close On Sight
On Thursday, Ethereum dropped 1.4% to retest a key space for the second consecutive day. After hitting a 10-month low of $1,747, the King of Altcoins bounced more than 15% to commerce between $2,000 and $2,150 over the past few days.
However, the second-largest cryptocurrency by market cap failed to maintain the essential $2,000 horizontal barrier on Wednesday and examined the $1,900 mark for the first time in a week.
After trying to reclaim the key psychological stage in the early hours of Thursday, Ethereum was rejected toward the current lows, briefly falling below it. Analyst Ted Pillows highlighted the significance of ETH’s current zone, as it has beforehand triggered major strikes.
To him, if the altcoin fails to reclaim the $2,000 space in the approaching days, a full retrace toward the current lows ought to be anticipated soon. Similarly, market observer Crypto Busy famous that the cryptocurrency is at the moment trading above a major long-term assist.
According to the post, the current correction has despatched Ethereum toward a three-year rising assist line, which “will decide the next big move.” The analyst warned that “If the trendline breaks with strong weekly closes below $1,900, the structure weakens.”
Therefore, ETH must maintain its current ranges in the approaching days to keep away from a weekly close below this stage. Otherwise, its price may drop “into the next liquidity pockets around $1,600 and possibly $1,300, where the next historical support zones exist.”
Is ETH’s ‘Real’ Bull Market Two Years Away?
Trader AlejandroXBT shared a potential macro-outlook for Ethereum that suggests the cryptocurrency may still see another major shakeout:
My thesis is that the major bullish transfer that started around 2019–2020 has transitioned into a large and extended macro correction, and that Ethereum has been consolidating within this broader corrective construction ever since.
He outlined 4 phases for the macro construction: the pump, the correction, the shakeout, and the moon. The initial section, which occurred between 2019 and 2021, marked “the true impulsive bullish move,” with strong pattern enlargement and rising momentum.
According to the market observer, the strong rally that adopted the 2022 bear market seems to be a “counter-trend move within a broader corrective range” reasonably than a renewed bull market and the start of a new long-term cycle.
As he explained, ETH’s range-bound conduct indicators distribution and consolidation instead of continuation. “From this perspective, the apparent bull market that developed within the correction can be interpreted as a dead cat bounce, a technically strong bounce occurring inside a larger corrective structure,” he affirmed.
Therefore, the current macro construction would recommend that a closing shakeout section may “still be required to fully reset sentiment and liquidity before Ethereum can transition into a new impulsive bullish cycle.”
Based on this, the trader anticipated a closing liquidity-driven transfer to the draw back in the approaching months, adopted by “the moon” section, probably next yr, when “the structure suggests the conditions for a true long-term bullish continuation, with price discovery and expansion well beyond previous highs.”
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