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Ethereum is trading at a critical juncture after intense volatility rocked the broader market following renewed conflict in the Middle East. After pushing above the $2,800 resistance earlier this week, ETH bulls appeared to regain control. However, the price action failed to hold above that level, pulling back sharply and signaling hesitation among market participants. Related Reading: Whales Dump Over 270 Million Cardano In One Week – Bearish Signal Or Shakeout? This retracement comes as macroeconomic and geopolitical tensions rise, particularly after Israel’s strike on Iran triggered widespread risk-off sentiment across global assets. Ethereum, often seen as a high-beta asset, has not been immune to the turbulence. Despite this, it continues to hover near important technical zones, maintaining the potential for a larger move in either direction. Top analyst Big Cheds weighed in on the situation, highlighting a notable technical pattern: ETH is flexing another small body with an upper shadow on the weekly chart. This suggests indecision and potential weakness at the top, although the structure is not yet fully compromised. The next few daily candles could be pivotal in defining Ethereum’s short-term trend. Bulls must reclaim $2,800 with conviction to re-establish momentum, while further downside could open the door for a deeper correction toward previous consolidation zones. Ethereum Holds Range As Market Awaits Next Move Ethereum has lost over 15% since last Wednesday, retracing from local highs near $2,830 and falling back into the trading range that has held since early May. Despite the drop, ETH remains structurally intact, still respecting the broader consolidation zone. However, price action continues to stall below the $2,770 resistance, keeping traders and analysts split on the next move. Some market participants believe Ethereum could ignite the next altcoin season if it manages to break above its current range with conviction. A decisive close above $2,800 could reestablish bullish momentum and signal capital rotation from Bitcoin into ETH and broader altcoins. Others remain cautious, pointing to weakening momentum, global instability, and a failure to sustain support as early warning signs of a potential breakdown below the $2,500–$2,550 area. Adding to the analysis, Cheds shared a technical perspective showing that Ethereum’s weekly chart is printing yet another small-bodied candle with an upper shadow. This structure is consistent with what he sees as a “pre-tower top” setup — a pattern that often precedes heightened volatility or a reversal. It highlights the market’s current hesitation and the ongoing battle between buyers and sellers. Macroeconomic conditions are not helping either. Rising US Treasury yields continue to pressure risk assets, while ongoing geopolitical turmoil—especially the escalating conflict between Israel and Iran—adds another layer of volatility and fear across financial markets. Related Reading: Ethereum Holds $2,500 Support – History Signals $4,000 As Potential Target ETH Struggles To Hold Breakout Ethereum is trading at a critical juncture after failing to hold the breakout above the $2,770 level. The chart shows ETH slipping back into its prior range, with price now testing support around $2,530 after a sharp intraday decline. This move follows a failed breakout attempt, as the price was rejected near the 200-day moving average, currently acting as dynamic resistance just below $2,650. The volume spike on the recent sell-off confirms strong bearish interest, increasing downside pressure. ETH is now sitting close to the lower end of a trading range that has persisted since early May. A decisive break below $2,500 could open the door for a drop toward the 50-day moving average near $2,380. This would put Ethereum on a path to retest earlier consolidation levels. Related Reading: Ethereum Faces Stress As Israel-Iran Conflict Shakes Sentiment – ETH/BTC Support In Focus On the upside, bulls must reclaim the $2,650–$2,770 resistance zone and establish a higher low to revive bullish momentum. Failing to do so will likely keep Ethereum range-bound or push it lower amid ongoing macroeconomic and geopolitical uncertainty. Featured image from Dall-E, chart from TradingView