Ethereum is showing early signs of a bullish formation, which is usually associated with potential volatility. With key support under pressure, a breakdown of this structure could push the price lower and put the $1,500 level in focus as the next major target.
Rejection of long-term key support
Luca, in a recent update, highlighted that the price of Ethereum has been rejected within the missing high-term support range, which he referenced in previous PAT updates. This level also coincides with the 2D Bull Market Support Band at $2,180, making it an important area to assess market direction. The decline suggests that buyers are struggling to recover from key support, keeping the market under pressure.
Looking at the medium-term picture, Luca noted that since the beginning of February, Ethereum has formed a bullish pattern. Rising cables are often considered warning signals because they can precede corrective moves and indicate that the current upside efforts may not have the strength needed to sustain a rally.
As long as there is no clear evidence of a sustained breakout both within the long-term lost support and the 2D Bull Market Support Band, Luca advises that traders should avoid and avoid overly aggressive positions. This strategy helps limit exposure while waiting for a clear market trend to emerge. For now, Luca plans to hedge to reduce the risk of a mid-term downturn.
The most likely scenario, according to his analysis, is continued consolidation within the high-loss gap. If the bearish pressure remains, Ethereum may continue the long-term downtrend of the past few weeks. The next key long-term support for control aligns with the April 2025 low near $1,500.
Ethereum shows potential for weekend trading
Ethereum may present some interesting trading opportunities this weekend. Lennaert Snyder revealed that price action around key levels can offer both short- and medium-term setups for active traders.
According to the analyst, Ethereum is currently holding a low of $2,036, which shows the connection with Smart Money Theory (SMT) and Bitcoin. This correlation suggests that price movements in ETH can track broader market trends similar to those observed in BTC and provide potential clues for trading decisions.
Snyder plans to enter a short using the bearish MSB as his trigger if Ethereum exceeds the buy liquidity above $2,099 and declines. Conversely, if the price rises above $2,099, he will rely on SMT with BTC and previously acquired liquidity to target $2,163.
He also warned traders to be mindful of today’s release of non-government payrolls (NFP), which could cause volatility in crypto markets. Sudden market reactions can affect ETH price action, making careful risk management around a news event important.
