Ethereum Eyes Recovery as New Trendline Forms Near $1,630 Support

Ethereum (ETH) is showing signs of stabilization after weeks of downside volatility, as a newly formed upward trendline on the daily chart suggests the $1,600–$1,700 range may act as a key support zone. The formation of higher lows points to a potential bullish shift in sentiment, indicating renewed accumulation among market participants.

While ETH remains well below crucial moving averages—namely the 50, 100, and 200 EMAs—the emerging wedge pattern hints at the possibility of a breakout, especially if trading volume increases. Ethereum is currently priced just above $1,630 and approaching a potential breakout point from the wedge structure. A decisive close above $1,700 could open the path toward a retest of the $1,900 resistance level.

Despite these positive technical indicators, momentum remains uncertain. A recent 20,000 ETH sell-off by a major whale on Kraken has added pressure, while inconsistent volume continues to limit Ethereum’s breakout potential. The RSI has gradually risen to 42, exiting oversold territory, suggesting weakening bearish momentum.

However, the trendline also acts as a double-edged sword. A breakdown below it could invalidate the current bullish setup and resume downward pressure, potentially dragging ETH toward $1,500 or lower support levels. Until the market sees confirmation through increased volume and positive macro trends, Ethereum’s recovery remains tentative.

With Ethereum hovering near $1,630, all eyes are on whether it can hold above the trendline and gain enough momentum to challenge resistance zones. Traders and investors should watch for sustained volume and price action above $1,700 for confirmation of a meaningful recovery.