Ethereum is trying to stabilize after its recent crash, but… recovery so far it lacks persuasive power. With prices rejecting key levels and higher time frame risks still looming, ETH is at a critical decision point where another structural move could define a near-term trend.

No 5-wave breakout, no confirmation for Ethereum yet

Ethereum continues to trade in a technically sensitive zone. According to More Crypto Online Until the market prints a clear five-wave impulse structure to the upside or at least breaks well above the weekend high, the likelihood of further declines within the outlined “orange scenario” remains elevated. Without this confirmation, the broader risk profile did not materially improve.

The rebound from last week’s lows, while noticeable, still has a frail and corrective appearance. Momentum has not picked up in a way that would typically signal the beginning of a sustained bullish reversal. Instead, the structure so far suggests a potential move toward a countertrend within a broader bearish or sideways structure.

That said, the current area on the chart is significant from a technical perspective. After the recent decline due to liquidation, the price has reached the zone where markets often try to stabilize. Sharp flushes can sometimes signal points of exhaustion, so it’s wise to be alert to early signals of a reversal, especially if sentiment has become too cynical.

However, as More Crypto Online points out, expectations are not confirmation. Microstructure now becomes critical. Only a shift towards impulsive upward behavior or a clear break of key resistance levels would confirm a significant low.

The rejection of $2,100 signals a resistance reversal

Plotting the daily time frame for Ethereum, Luca, a market expert and investor, excellent that while the price managed to recover on the lower time frames, the recovery has already met with rejection at the key former support zone around $2,100, marked in purple. This level previously acted as support but was lost during the recent decline, turning it into resistance on the way back up.

The failure to regain this range signals that growth dynamics remain delicate. Until Ethereum can decisively turn the $2,100 area back into support, Luca believes the structure continues to favor caution rather than calling for a confirmed bottom.

As a result, in his opinion, the more likely path is to continue down towards the support zone marked in green from higher time frames. This area coincides with the early April low pattern and could provide a stronger foundation for a more sustained upside reversal attempt.

Given this outlook, Luca explained that he maintains hedges on lower time frames to manage exposure to declines. Until clear strength emerges and key levels are regained, capital preservation remains a priority.