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Ethereum Tests Key Range Support as Monthly Structure Signals Critical Turning Point

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR:

  • Ethereum is nearing a multi-year support zone, where demand has historically driven strong price reversals.
  • Monthly chart structure shows ETH moving within a defined range between $1,500 and $5,000 levels.
  • Tightening volatility suggests a breakout may occur soon as price compresses near key support.
  • Traders monitor for bullish confirmation signals before positioning within the current range setup.

Ethereum is approaching a critical support range on higher timeframes, as recent market structure points to a prolonged consolidation phase.

Analysts are closely watching price behavior near key levels, where risk-to-reward setups tend to favor strategic positioning within established boundaries.

Ethereum Tests Range Extremes on Higher Timeframes

Recent analysis shared by market participant Lennaert Snyder points to Ethereum revisiting a key monthly support zone.

His observations focus on a “sell-to-buy” candle that initiated the move toward the all-time high. That area now acts as a technical reference for long-term traders.

According to the tweet, price is testing the lower boundary of a multi-year range. This zone aligns with previous demand and remains a focal point for potential accumulation.

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The presence of a long wick in that candle suggests liquidity remains in that region. Markets often revisit such wicks before establishing a directional move.

The broader monthly structure presents a clear cycle. Ethereum surged during 2020 and 2021, followed by a sharp decline in 2022.

Since then, price has moved sideways, forming a wide horizontal range. This structure indicates a market without a strong directional trend.

The range is defined by resistance near $4,800 to $5,000 and support between $1,500 and $1,700. These levels have repeatedly acted as turning points. Buyers tend to step in near the lower boundary, while sellers dominate near the upper limit.

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Snyder’s commentary suggests that testing this lower range extreme could offer favorable setups. Traders often seek entries in such zones due to tighter risk control. However, confirmation through price action remains essential before any directional bias is established.

Consolidation Phase Signals Potential Expansion

On lower timeframes, Ethereum reflects a similar pattern of compression. After a sharp decline earlier this year, price stabilized and moved within a narrower range. This aligns with the broader monthly structure, reinforcing the idea of consolidation.

Technical indicators show reduced volatility, as Bollinger Bands have tightened. This typically precedes larger price movements, although direction remains uncertain. At the same time, momentum indicators indicate weakening bullish pressure in the short term.

Price currently trades near the middle to lower portion of its recent range. Resistance remains firm around $2,200 to $2,300, while support sits near $1,900. These levels act as immediate barriers within the broader structure.

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The projected path shared in the analysis suggests a possible dip into deeper support. This move could sweep liquidity before a potential reversal. Such behavior is common in range-bound markets, where stop levels attract price action.

Two scenarios remain in focus. If Ethereum holds the lower support zone, a gradual move toward mid-range levels near $3,000 could follow. Continued strength may then push price toward the upper boundary of the range.

On the other hand, a breakdown below $1,500 on a monthly close would shift the structure. This would indicate a loss of support and open the door for further downside. Market participants continue to monitor these levels closely as price approaches a decision point.

As Ethereum trades near range extremes, attention remains on confirmation signals. The coming months are expected to provide clearer direction within this established structure.

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Market Preview: CPI Inflation Reports and Delta (DAL) Earnings Amid Iran Conflict

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

Key Highlights

  • First inflation measurements since Iran conflict began: March CPI and February PCE reports scheduled
  • March employment report showed 178,000 new positions, surpassing the 65,000 forecast
  • Crude prices surged more than 50% following war outbreak, pushing gasoline beyond $4 nationwide
  • Delta Air Lines earnings Wednesday will reveal jet fuel expense impact on carrier profitability
  • Major indices snapped five consecutive weeks of declines, climbing at minimum 3%

Investors are preparing for a pivotal week featuring critical inflation measurements, quarterly corporate results, and continued monitoring of the Iran conflict’s economic ramifications.

Last week’s trading session saw the S&P 500 advance 1.6%, while the Dow Jones climbed 1.2%, and the Nasdaq Composite surged 2.2%. The rally ended a five-week decline for all three benchmarks. Year-to-date, the S&P 500 and Dow remain lower by 3.8% and 3.2%, respectively.

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E-Mini S&P 500 Jun 26 (ES=F)

Friday’s employment data for March significantly exceeded analyst projections. The report revealed 178,000 nonfarm payroll additions versus consensus estimates of 65,000. This represented a sharp reversal from February’s 92,000 job losses.

“The message here is equilibrium,” noted Gina Bolvin, president of Bolvin Wealth Management Group. “Robust employment growth diminishes pressure for immediate rate reductions, though it doesn’t alter the overall deceleration pattern.”

Michael Feroli, JPMorgan Chase’s chief US economist, indicated the figures provided “somewhat greater assurance that economic expansion can absorb the current energy cost surge without substantial lasting harm.”

Critical Inflation Measurements Approaching

Thursday delivers the February Personal Consumption Expenditures index, an inflation gauge the Federal Reserve prioritizes. Analyst consensus projects a 0.4% monthly advance and 2.8% annual growth.

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Source: Forex Factory

Friday presents the more significant release: March’s Consumer Price Index. Forecasters anticipate a 0.9% monthly increase and 3.4% annual rise. February’s CPI registered 2.4% annually. This upcoming report represents the initial measurement incorporating Iran war-related pricing effects.

National average gasoline prices exceeded $4 per gallon last week, per AAA data. Goldman Sachs analyst Ben Shumway noted escalating costs are “contributing to further deterioration in consumer sentiment from previously depressed readings.”

Andy Schneider, senior US economist at BNP Paribas, observed that “supply disruptions in the Strait of Hormuz have materialized while tariff impacts continue spreading,” noting that “initial petroleum price transmission will be reflected in March figures.”

Goldman economist Manuel Abecasis characterized the present supply disruption as “less worrisome than previous instances that generated inflation challenges,” pointing to its constrained scope and range.

Corporate Results and Conflict Implications

Delta Air Lines releases quarterly results Wednesday morning before market open. The carrier’s performance will illuminate how elevated aviation fuel expenses are impacting airline sector margins. Constellation Brands and Levi Strauss additionally report during the period.

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Street analysts forecast earnings expansion exceeding 13% across the S&P 500 overall, per FactSet data.

Oil prices have climbed over 50% during the five weeks since hostilities commenced. Shipping activity through the Strait of Hormuz remains virtually nonexistent. Trump conducted a Monday briefing alongside military leadership as his self-established deadline for strait reopening nears.

Capital.com analyst Daniela Hathorn observed that “investors have shifted from pricing in de-escalation scenarios to assessing escalation likelihood.”

Paola Rodriguez-Masiu, Rystad Energy’s chief oil analyst, indicated the temporary cushion that initially contained price increases from pre-conflict petroleum inventories is now depleting.

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The Federal Reserve’s March policy meeting minutes release Wednesday at 2 p.m. ET. Market participants broadly anticipate the Fed will maintain current interest rates at its upcoming April session.

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Odds of a US Invasion of Iran Spike After Trump’s Threat of Escalation

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Iran, US Government, United States, Donald Trump, Oil and Gas, Polymarket

The odds of the United States invading Iran this year surged to 63% on the Polymarket prediction platform on Sunday, following comments made by US President Donald Trump on social media.

Despite the surge, the odds of an invasion before 2027 are still down from the high of 68% on March 29, due to a US troop buildup in the region and comments from the Trump administration that the United States was considering capturing Kharg Island, a major Iranian oil shipping station.

Volume on that prediction was about $3.74 million at the time of publication.

Iran, US Government, United States, Donald Trump, Oil and Gas, Polymarket
Odds of the US invading Iran before 2027 surge to 63%. Source: Polymarket

On Tuesday, after Trump signaled that the US might leave Iran in the next two to three weeks, Bitcoin (BTC) jumped by about 2.6% and the S&P 500 index to added about 2.91%. However, Trump reversed course with his latest statement on Sunday. He wrote:

“Tuesday will be power plant day, and bridge day, all wrapped up in one, in Iran. There will be nothing like it! Open the fuckin’ strait, you crazy bastards, or you’ll be living in hell.”

At last look, BTC was little changed, trading up less than 0.1% in the past 24 hours, remaining anchored around the $67,500 level, according to data from TradingView.

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The mixed signals from the Trump administration on the war and how long it will last continue to create investor uncertainty and an impact on all risk asset prices, as market analysts, traders and economists attempt to forecast the effects of the war.

Iran, US Government, United States, Donald Trump, Oil and Gas, Polymarket
Source: Donald Trump

Related: Polymarket takes down market on missing US pilot after backlash

Trump’s comments draw a wave of online backlash, but asset prices barely budge

“I wish Trump would stop threatening Iranian civilian infrastructure. It’s a lose-lose for us: backing down hurts his negotiating credibility,” economist Peter Schiff said in response to Trump’s comments. 

“Carrying it out escalates the war, damages US standing, generates sympathy for Iran and fuels Iranian hatred for America,” Schiff continued.

“I assumed this was a fake, it isn’t — wild,” podcaster and Bitcoin advocate Peter McCormack said.

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Brent crude oil, the most widely used pricing benchmark for the international spot oil market, remains elevated, closing Thursday at more than $109 per barrel. Trading is scheduled to resume on Monday following the Easter holiday weekend.

Magazine: Inside the Iranian Bitcoin mining industry