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Ethereum price formed a base above $1,950 and launched a recovery wave that pushed it past $2,020 before reaching $2,168, yet it now trades below $2,050 as traders watch critical resistance and support zones.
Ethereum climbed steadily after holding the $1,950 area and broke through the $1,980 and $2,020 resistance levels. The rally gathered pace and drove the price toward $2,140 before topping at $2,168. Soon after, sellers regained control and forced a drop below $2,050. The pullback brought the price to the 38.2% Fibonacci retracement of the move from $1,745 to $2,168.
At present, Ethereum trades under $2,050 and below the 100-hourly Simple Moving Average. Meanwhile, a contracting triangle forms on the hourly chart with resistance near $2,040. If bulls defend $2,000, price could attempt another advance. Immediate resistance stands at $2,050, followed by a key barrier at $2,065.
Beyond that, $2,120 marks the next major resistance. A clear break above $2,120 could open the path toward $2,165. Should price push above $2,165, buyers may target $2,250 and possibly $2,280 in the near term. Can Ethereum sustain momentum above $2,120 to confirm a stronger recovery?
If Ethereum fails to clear $2,065, sellers could trigger a fresh decline. Initial support lies near $2,000, where buyers previously stepped in.
Below that, $1,950 forms the first major support. This level also aligns with the 50% Fibonacci retracement of the rally from $1,745 to $2,168. A decisive break under $1,950 could send the price toward $1,900. Further weakness might expose $1,850.
Traders also watch $1,820 as the main support zone. A move below that region would deepen short-term pressure. These levels now define the short-term structure. Price action around $2,000 and $1,950 will likely shape the next directional move.
Read More: Solana vs Ethereum: Which Crypto is Better for 2026?
Bitcoin has dropped 50% from its October record high, marking its worst correction since 2022. On Wednesday, bitcoin slipped below $67,000 after a brief rebound above $72,000 from $60,000 over the weekend.
Over the past 24 hours, BTC fell 2.8%. At the same time, Ethereum declined about 3% and traded near $1,950. Market participants linked the recent weakness to volatility in metals markets. In late January, gold’s market capitalization swung by trillions of dollars in one day.
Those moves triggered margin calls and pressured risk assets, including crypto. After bitcoin lagged behind gold in 2025, some analysts suggested gold may have topped for the year. They also noted that bitcoin could outperform through 2026. Regarding ether, repeated 50% drawdowns since 2018 have often preceded sharp rebounds.
Market technician Tom DeMark indicated that ETH might need to dip briefly below $1,800 to form a “perfected bottom” before a sustained recovery. Still, forecasts have missed targets in recent months. In August 2025, a $200,000 year-end bitcoin call fell short after BTC peaked at $126,000 in October and closed the year at $88,500.
A later projection for a new all-time high in January 2026 also missed as bitcoin dropped to $78,500 by Jan. 31.
Ethereum price rebounded from $1,950 and reached $2,168 before slipping below $2,050. Key resistance stands at $2,065 and $2,120, while strong support rests near $1,950 and $1,820. Broader crypto volatility and the Bitcoin correction continue to shape short-term direction. Traders should closely watch these critical levels.
