4 min readEthereum broke below its established range over the weekend, as rising tensions in the Middle East weighed on risk assets. The move sent the price straight through the previous range lows at $2,400 and into the high time frame support zone that marked the origin of the May breakout. While the level was not hit precisely, the reaction came close enough to be considered a front-run of that area.
However, the narrative shifted quickly following news that Israel and Iran had agreed to a truce. Risk assets responded sharply, and Ethereum staged a strong recovery, bouncing aggressively back toward the previous range structure. Price is now retesting the $2,400 area from below, which marks both the former range lows and the underside of a broken descending trendline.
This is the first retest from below of a major confluence zone. A confirmed reclaim of $2,400 would signal strength and suggest that Ethereum could re-enter the prior range. In that case, the $2,550 to $2,600 region becomes the next likely resistance zone to watch, marking the range EQ.
Failure to break back above $2,400, however, would indicate a bearish retest and keep the door open for a renewed move toward the high time frame support zone.
On the 4-hour chart, the structure becomes more defined. Level 1 marks the previous range lows, now acting as resistance. Level 2 sits higher at the range midpoint near $2,550. Reclaiming both levels would put bulls back in control, at least in the short term.
Until then, price action around $2,400 will remain the key decision point. If sellers step in at this zone, downside pressure could resume, with the untested high time frame support remaining the next major area to monitor.
With the truce news injecting relief across markets, Ethereum’s recovery is notable, but whether this bounce turns into a sustained reversal depends entirely on the outcome of this critical retest.
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