TLDR
- ETH is showing signs of recovery but still trades below the crucial $2,000 mark
- ETH/BTC ratio has reached its lowest volatility level in over two years
- Price is consolidating between $1,750 and $1,850, testing key resistance
- Technical indicators suggest momentum is building but not yet confirmed
- A breakout above $1,850 could target the $2,000 resistance zone
Ethereum has been showing signs of life after weeks of heavy selling pressure and negative sentiment. The second-largest cryptocurrency is attempting to reclaim critical price levels as bulls step back into the market. Currently trading near $1,831, ETH remains below the key $2,000 mark—a level that must be breached to confirm a meaningful shift in market structure.
The ETH/BTC ratio has reached its lowest volatility level in more than two years. According to analyst Daan, this metric has been in a prolonged downtrend but has stalled for over a month.
Such low-volatility periods often precede sharp directional moves as the market builds pressure.
The $ETH / $BTC ratio is now at the lowest volatility level it has been in 2+ years.
After years of pretty much down only, it has stalled for the past month or so. Nothing we've not seen before but generally we do see the ocasional squeeze after price stalled out.
Regardless,… pic.twitter.com/dZMiCYjCg6
— Daan Crypto Trades (@DaanCrypto) May 6, 2025
Ethereum is currently trading above both the $1,820 level and the 100-hourly Simple Moving Average, showing modest strength after bouncing from recent support near $1,780.
Technical Analysis Points to Potential Breakthrough
On the 4-hour chart, ETH is attempting to establish a higher low and reclaim bullish momentum. However, it still faces resistance below the $1,874 high from May 1st.
The price is consolidating just above the 200-period EMA at $1,787 and the 200-period SMA at $1,699—two levels that have served as dynamic support and resistance zones throughout recent trading sessions.
A connecting bullish trend line is forming with support at $1,810 on the hourly chart of ETH/USD.
The bulls were able to push the price above the 50% Fibonacci retracement level of the downward move from the $1,872 swing high to the $1,752 low.
ETH is now facing hurdles near the $1,840 level and the 76.4% Fibonacci retracement level of the same downward move.
The first major resistance is near the $1,920 level. A clear move above this resistance might send the price toward the $1,950 resistance.
Market Context and Support Levels
Ethereum remains down more than 55% from its December highs, with the bearish price structure still intact. Any further weakness could trigger deeper downside.
If Ethereum fails to clear the $1,850 resistance, it could start a fresh downside correction. Initial support is near the $1,825 level, with major support at $1,810 and the trend line.
A break below $1,810 might push the price toward $1,780, with the next key support sitting at $1,750. Further losses could send the price toward the $1,665 support level.
Market volatility is being fueled by macroeconomic uncertainty, particularly as the U.S. and China continue to engage in trade negotiations. Investors remain cautious, with Ethereum’s struggle to show strength raising concerns about its near-term outlook.
This sideways action highlights market indecision as ETH struggles to break free from its range, with volatility compressing and volume remaining muted.
Technical indicators suggest that momentum is building, but confirmation is still needed. The hourly MACD for ETH/USD is gaining momentum in the bullish zone, and the RSI is now above the 50 zone.
The combination of reduced volatility, long-term support on the ETH/BTC pair, and renewed bullish momentum on the USD chart is creating a cautiously optimistic setup.
A clean breakout above $1,874 could signal the start of a bullish leg targeting the psychological $2,000 mark or even $2,050 in the near term.
The coming days will be crucial as ETH tests resistance levels. A confirmed breakout above $2,000 could indicate that Ethereum’s next leg higher is about to begin.
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