Ethereum is trying to stabilize after its recent pullback, but the recovery so far lacks convincing strength. With prices rejecting key levels and longer-term risks still looming, ETH finds itself at a critical decision point where the next structural move could set the short-term trend.
No 5-wave breakout, no confirmation yet for Ethereum
Ethereum continues to trade in a technically vulnerable zone. According to More Crypto Online, until the market prints a clear impulsive five-wave structure to the upside, or at least decisively exceeds the weekend high, the probability of a further decline in the described “orange scenario” remains high. Without this confirmation, the overall risk profile has not significantly improved.
The rebound from last week’s low, while noticeable, still presents a weak and corrective aspect. Momentum has not developed in a way that would typically signal the start of a lasting bullish reversal. Instead, the structure so far suggests a potential counter-trend move within a broader bearish or sideways framework.
That said, the current area on the map is technically significant. Following the recent decline caused by liquidations, the price has reached an area where markets often attempt to stabilize. Strong hot flashes can sometimes mark points of exhaustion, making it reasonable to stay alert for early signs of a turnaround, particularly if sentiment has become too pessimistic.
However, as More Crypto Online points out, anticipation is not confirmation. The microstructure now becomes critical. Only a shift towards impulsive bullish behavior or a clear break of key resistance levels would validate a significant low.
$2,100 Rejection Signals Resistance Reversal
Charting Ethereum’s daily timetable, market expert and investor Luca noted that while the price managed to rebound on lower timeframes, the recovery has already been rejected at a key old support zone around $2,100, highlighted in purple. This level previously served as support but was lost during the recent decline, turning it into resistance during the rally.
The inability to find this range indicates that the upward momentum remains fragile. Until Ethereum can decisively flip the $2,100 zone into support, Luca believes the structure continues to err on the side of caution rather than calling for a confirmed bottom.
As a result, according to him, the most likely path is a continuation downward towards the longer-term support zone marked in green. This area aligns with the formation of the early April low and could provide a stronger foundation for a more lasting bullish reversal attempt.
Given this outlook, Luca explained that he maintains hedges on shorter time frames to manage downside exposure. Until clear strength emerges and key levels are reclaimed, capital protection remains the priority.
