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Ethereum Price Hits Critical 5Y Volume Support Zone: Is a Multi-Month Reversal Setting Up?

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Ethereum Price Hits Critical 5Y Volume Support Zone: Is a Multi-Month Reversal Setting Up?

TLDR:

  • Ethereum is testing a major five-year high-volume node between $1,850 and $2,000 on the monthly chart.
  • The latest monthly candle prints a long lower wick, signaling active defense by larger market participants.
  • ETH structure remains heavy with lower highs from $4,000, keeping resistance firm between $2,700 and $3,600.
  • On-chain transaction data mirrors the 2017 cycle pattern, which preceded a sustained one-year bull market run.

Ethereum is at a critical inflection point after tapping a major five-year volume node on the monthly chart. The asset was trading at $1,901.69 as of writing, down 2.09% in the last 24 hours.

The seven-day decline stands at 4.33%, with trading volume at $20.23 billion. Market participants are closely watching this zone. The monthly reaction here is expected to define the next multi-month directional move for ETH.

Ethereum Price Taps Key Demand Zone With Long Lower Wick on Monthly Chart

Ethereum at a critical inflection point means price is now testing the $1,850–$2,000 high-volume node on the monthly timeframe.

This zone has drawn heavy market participation over the past five years. Large positions were historically built here, giving it structural demand characteristics rather than acting as a random support level.

Analyst Bitcoinsensus noted that the latest monthly candle prints a long lower wick within this region. That pattern reflects aggressive buying activity below the support area. It suggests that larger participants are actively absorbing sell pressure and defending the zone.

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However, a wick alone reflects reaction, not a confirmed reversal. The broader structure still carries weight from above, showing a pattern of lower highs from the $4,000+ region. ETH continues to trade beneath prior range resistance between $2,700 and $3,600.

Until momentum shifts and price reclaims the mid-range area, downside risk cannot be ruled out. A confirmed hold above $1,850 on a monthly close would support a move toward $2,700. From there, an expansion toward $3,300–$3,600 becomes the next area of interest.

On-Chain Transaction Data Draws Parallel to Ethereum’s 2017 Market Cycle

On-chain analyst CW8900 observed that Ethereum transaction activity is mirroring patterns seen during the 2017 cycle.

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That period saw an explosive rise in ETH transactions, followed by a sharp decline. The correction eventually gave way to a roughly one-year bull market run.

The current setup shows a similar sequence. After a surge in transaction activity, ETH has experienced a notable price pullback. This parallel is drawing attention from analysts who monitor long-term cycle behavior on-chain.

Source: Cryptoquant

If history follows a similar path, the next phase could bring renewed bullish momentum for Ethereum. That said, historical patterns serve only as reference points.

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Market structure and macro conditions today differ from those in 2017 in meaningful ways.

For now, Ethereum remains at a macro decision point. Acceptance below $1,850 on a monthly close would open the path toward the $1,500 level relatively quickly.

The price action over the coming weeks will be essential in confirming which direction the market commits to from this key zone.

 

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Crypto World

Anthropic CEO Slams Pentagon Decision As ‘Unprecedented’

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US Government, United States

The CEO of AI company Anthropic, Dario Amodei, has responded to the United States Department of Defense and the White House, ordering military defense contractors that do business with the Department of Defense to stop using Anthropic’s products.

Anthropic objected to the use of its AI models for mass domestic surveillance and fully autonomous weapons that can fire without any human input, Amodei told CBS on Saturday. 

He added that Anthropic was fine with all of the US government’s proposed use cases for its AI models, except for surveillance and fully autonomous weapons platforms. He said:

“These are things that are fundamental to Americans: the right, not to be spied on by the government, the right for our military officers to make decisions about war, themselves, and not turn it over completely to a machine.” 

US Government, United States
Anthropic CEO Dario Amodei responds to an announcement from US officials labeling the company as a “supply chain risk.” Source: CBS

The decision by the Defense Department to label Anthropic as a “supply chain risk,” meaning that military contractors cannot use Anthropic’s products on defense contracting work, is “unprecedented” and “punitive,” he added.

Amodei later clarified that he is not against the development of fully automated weapons if foreign militaries begin using them in the future, but that AI is not yet reliable enough to function autonomously in a military setting.

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The law has not caught up to the rapidly developing AI sector, Amodei said, calling on the United States Congress to pass “guardrails” to prevent the use of AI in domestic mass surveillance programs.

Related: Anthropic says it’s been targeted in massive distillation attacks

OpenAI wins a defense contract after US officials label Anthropic a supply chain risk

On Friday, US “Secretary of War” Pete Hegseth announced that Anthropic is a “Supply-Chain Risk to National Security.”

“Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic,” he said. 

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Hours later, rival AI company OpenAI accepted a contract with the US Defense Department to deploy its AI models across military networks. 

US Government, United States
OpenAI CEO Sam Altman announces OpenAI has reached an agreement to provide services to the Department of Defense. Source: Sam Altman

The announcement of the deal from OpenAI CEO Sam Altman drew online backlash from critics, who cited AI being used for mass domestic surveillance and undermining individual privacy as a red line.  

Magazine: ‘Slaughterbot’ drones in Ukraine, MechaHitler becomes sexy waifu: AI Eye