Ethereum Price News: ETH Retests Key Resistance But Still Risks Drop to $1.8K

Ethereum (ETH) has gone up by 5% in the past 24 hours and has already retested a key resistance at $2,150 during today’s session as the market seems willing to put bears’ commitment to the test.

Trading volumes increased by 17% during this same period, rising to $21 billion and accounting for 8.3% of the token’s circulating market cap.

Over $60 million worth of ETH short positions have been blown up as a result of today’s uptick, increasing the odds of a squeeze if the price manages to break past this key supply zone.

However, macroeconomic conditions have worsened in the past few days, as oil prices once again hit the $100 mark.

The Market No Longer Expects a Rate Cut in 2026

The Iran war is putting pressure on the global economy, and investors fear that it could lead to higher inflation in the United States via an increase in energy costs.

As a result, analysts no longer expect that the Federal Reserve will cut interest rates this year, according to data from FedWatch. This shift in market sentiment is harmful to risky assets like cryptocurrencies.

Hence, we have strong macroeconomic headwinds favoring a bearish outlook for Ethereum, which is why we see this key resistance retest as an opportunity to short-sell the token with the expectation that it may drop to $1,800 shortly.

Moreover, Iran threatened to attack the largest U.S. tech companies in retaliation. As geopolitical tensions continue to escalate, fears of a global recession caused by higher oil prices could cause another wave of panic-selling.

Ethereum Retests Key Resistance, But The Odds Favor a Bearish Outlook

Looking at the daily chart, we have been observing three key levels for ETH in our previous price predictions. The most relevant right now is the $2,150 area, a key resistance that the top altcoin managed to break in mid-March but that failed to hold as the selling pressure ramped up.

We are retesting that key supply zone once again, and this could seal the deal for ETH if we get a decisive “sell” signal in lower time frames.

The Relative Strength Index (RSI) just hit 53, meaning that bullish momentum is accelerating. However, unless we get a move above the latest high at $2,400, this can still be qualified as a bearish retest.

In contrast, if the price of ETH rises past $2,400, the next stop would be $2,800, which would consummate a full-blown reversion to the mean.

Heading to the 4-hour chart, we got a buy signal on Sunday as ETH decisively climbed above the $2,000 level.

Our signals system picks up “decisional” candles that feature above-average volumes and a specific candle pattern. The goal is to identify “high-conviction” price moves at key levels. Since this buy emerged at $2,000, a relevant psychological threshold, it is worth our attention.

Let’s see what the American session does. If the market dumps ETH at this level, investors should brace for a drop to $1,800.