Ethereum (ETH) has stabilized after a sharp 10% drop that rattled altcoins and triggered investor caution. Despite heightened volatility across the crypto market, ETH is showing notable strength—bouncing from recent lows and reclaiming a critical level above $2,400.
This move has sparked optimism among traders, who now look to Ethereum’s reclaim of the 200-period moving average on the 4-hour chart as a potential signal for a fresh bullish trend in June.
📉 ETH Price Stabilizes After Market Shake-Up
ETH dropped sharply from the $2,600 range, finding support near $2,300 before rebounding to current levels around $2,475. The pullback coincided with broader market unease tied to rising political tensions—especially a public spat between Elon Musk and former U.S. President Donald Trump, which rippled across risk assets.
Despite the chaos, Ethereum avoided deeper breakdowns. Market analyst M-Log1 noted on X that ETH is “bouncing exactly as expected” and currently sits near the 200MA, a level historically viewed as a trend confirmation zone.
📊 Key Technical Levels to Watch for Ethereum
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Support zone: $2,300–$2,400
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Resistance zone: $2,600–$2,700
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Major breakout trigger: Weekly close above $2,700
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Bearish scenario: Drop below $2,250 could retest April lows
According to M-Log1, if Ethereum successfully reclaims the 50MA and 100MA, this may confirm a short-term bullish reversal—potentially lifting ETH back to $2,600 and higher in June. That reclaim could also restore confidence in altcoins, which have lagged during recent Bitcoin dominance.
🧠 Weekly Chart: Ethereum Faces Key Resistance
On the weekly timeframe, ETH continues to test the 200-week SMA at $2,450. While the asset briefly broke above this level, strong resistance near $2,680 (also the 34-week EMA) has triggered rejection candles and price hesitation.
The structure remains neutral-to-bullish, with long wicks suggesting active buyers defending dips—but also persistent selling pressure near resistance. A weekly close above $2,700 would likely mark a confirmed breakout, possibly kicking off a broader altseason.
🚨 Outlook: Cautious Optimism Among Ethereum Bulls
Despite macro uncertainty and political risk, Ethereum is holding its ground. Traders are watching closely for a reclaim of mid-range moving averages and a push above $2,600—factors that could act as rocket fuel for a June rally.
However, if ETH fails to maintain support above $2,300, the broader market may enter another consolidation phase, delaying bullish momentum. For now, Ethereum’s resilience and technical setup suggest a cautiously optimistic outlook.