The crypto market witnessed a surprising rally by Ethereum on Wednesday, with a robust 21% increase from its recent $1,380 low. The surge followed the announcement by the US President Donald Trump of a 90-day pause on reciprocal tariffs for all countries, excluding China. This news infused positivity into global markets, instigating a wide recovery across risk assets, with Ethereum reaping substantial benefits.
Despite this relief rally, Ethereum’s trading values linger below crucial technical markers, indicating a potential ongoing consolidation rather than a definitive reversal. Analysts maintain a cautious stance, citing the crypto’s failure to recover the $1,800-$2,000 range, which keeps its long-term trend uncertain.
However, CryptoQuant’s on-chain data provides a fascinating perspective. Ethereum’s trading price is currently below its realized price (the average price at which all circulating ETH last moved). This has historically indicated a high probability accumulation zone, typically occurring once per cycle.
Some market observers suggest this could be an exceptional opportunity for contrarian investors willing to overlook short-term volatility and macro uncertainty. As Ethereum continues to consolidate, the market is closely watching whether the bulls can sustain this momentum.
After weeks of sustained selling pressure and extreme volatility, Ethereum is at a critical juncture. Macroeconomic uncertainty and escalating global trade tensions have unsettled the broader market, with Ethereum bearing much of this instability. However, a potential shift appears to be in progress, with Ethereum establishing a strong support above $1,400.
Still, Ethereum trades below key resistance levels, particularly the $2,000 mark. Top analyst Quinten Francois notes that ETH is currently trading under its realized price. Historically, such conditions have offered rare buying opportunities and this might be a once-in-a-cycle chance for long-term investors to accumulate undervalued ETH.
Currently, Ethereum is trading at $1,650, unable to breach the $1,700 level. For a stronger recovery, Ethereum must surpass the $1,850 mark. Conversely, if Ethereum cannot break above $1,750 in the coming days, the downside risk amplifies. A rejection at current levels could trigger another selling wave, possibly pushing the price below the $1,500 support zone.
In a market still influenced by fragile sentiment and macroeconomic uncertainty, Ethereum finds itself at a pivotal point where a decisive move above resistance is crucial to changing the bearish outlook to neutral.
