Ethereum's Critical Support Holds as Confidence Wavers post-17% Drop

Ethereum experienced a significant 17% decline since Friday, breaking below the longstanding trading range established since early May. The market reaction was influenced by geopolitical tensions following US airstrikes on Iranian nuclear facilities, leading to widespread risk-off sentiment and sharp sell-offs in risk assets, including Ethereum. The cryptocurrency found temporary support at around $2,100, a critical demand zone, but the breach of its previous range indicates a decisive shift in momentum toward bearishness. Notably, top analyst Ted Pillows highlights that for bullish control to be re-established, Ethereum must reclaim the upper boundary of its former range, which now acts as a key resistance level. The current environment, marked by heightened geopolitical risks, persistent inflation, and a hawkish Federal Reserve, continues to weigh heavily on Ethereum and broader crypto markets. While the recent bounce from $2,100 offers some hope, the path forward remains uncertain. Bulls need to push above initial resistance levels to avoid deeper declines, especially if Ethereum fails to recapture the $2,350 mark, risking further downside towards previous support levels. Overall, Ethereum is in a critical juncture; its ability to recover above key resistance zones will be pivotal in determining whether the current correction is temporary or the start of a more prolonged bearish trend. The coming sessions will be crucial for assessing whether bulls can regain control or if bears will extend their dominance, especially under the weight of macroeconomic and geopolitical headwinds.