Ethereum is trading just above the psychologically important $2,000 level, but the apparent stabilization can be misleading. According to technical analysis published on TradingView by crypto analyst RLinda, what looks like an attempted recovery is actually a counter-trend correction, a bear market rebound that could be prepare the bulls for a painful color lower.
Crypto Winter tightens its grip
RInda analysis opens with a direct assessment of how the crypto winter is still in play and support could collapse around $2,000.
Technical analysis of the 2-hour time frame chart shows that Ethereum has already printed a series of lower highs and lower lows after its rejection around $2,380 in mid-March. The more recent low saw Ethereum price fall to the $1,960-$1,990 area over the weekend, confirming that sellers are still fighting for control, forcing the market into what RLinda describes as a counter-trend correction.
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This type of correction often creates the illusion of healing. The price begins to move higher or sideways, but within the context of a broader bearish structure. The charts clearly reflect this, with Ethereum now attempting a modest rebound after establishing a local bottom just below $2,000 over the weekend.
Worse still, it is the Bitcoin macro backdrop. Bitcoin, which had staged what appeared to be an attempted recovery to $72,000 last week, failed to maintain those gains and fell to $65,810 over the weekend. Bear took back control and the weakness of Bitcoin directly impacts altcoins. This, in turn, could cause Ethereum price to bear the brunt of this spillover pressure in the coming days.
Pricing Battlegrounds to Watch
The immediate focus on the 2-hour chart is a tight resistance group formed between $2,024 and $2,062. This area coincides with several technical factors visible on the chart, including previous support turned resistance, Fibonacci retracement levels around 0.5 and 0.618, and a descending trendline putting pressure on lower highs in March.
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According to RLinda, Ethereum could test the 2025 to 2038 liquidity zones. A short squeeze would provide a good signal for a potential decline. The price resistance levels to watch in this case are $2,025, $2,037, and $2,062. The point of interest (POI) at $2,062.50, which is also shown on the chart above, is the largest.
A retest of this resistance zone, followed by a false breakout and consolidation in the short zone, will confirm the dominance of the bear. If this confirmation materializes, it could create a counter-trend correction that results in a new round of selling pressure that pushes Ethereum price towards an interest support point around $1,900. At the time of writing, Ethereum is trading at $2,050.
Featured image from Pixabay, chart from Tradingview.com
