Amid the latest market recovery, Ethereum (ETH) attempted to break out from its multi-month downtrend, leading some market watchers to suggest that a new rally could start soon. However, as price struggles to hold the $1,600 level as support, the cryptocurrency risks losing recent momentum.<\/p>\n
On Easter Sunday, the crypto market saw a positive end-of-week after jumping 4.2%. Bitcoin (BTC) closed the week above the $85,000 barrier for the first time this month, while Ethereum surged<\/a>\u00a05.4% to attempt to reclaim the $1,600 resistance for the third time in the past seven days.<\/p>\n ETH closed the week around the $1,640 mark before climbing to $1,658 during Monday\u2019s early hours. Amid this performance, the cryptocurrency attempted to break out of its multi-month downtrend for the first time.<\/p>\n Crypto analyst Ted Pillows highlighted<\/a> that Ethereum broke out of its descending resistance on Monday morning. According to the post, the cryptocurrency has been in a downtrend in the one-day chart since early February, retesting the trendline thrice over the past few months, but always being rejected.<\/p>\n Its latest rejection from the descending resistance sent the cryptocurrency below the $1,700 mark, which fueled the bearish sentiment brewing toward ETH. The start-of-April retraces, driven by the ongoing tariff war between the US and China, further sent Ethereum to lower levels, hitting its two-year low below $1,400 and retesting the 2018 highs.<\/p>\n The analyst noted that ETH could rally toward<\/a> $2,000 during April\u2019s last leg if the cryptocurrency holds the $1,600 support, which it hasn\u2019t been able to do for most of the month.<\/p>\n Analyst Carl Runefelt also highlighted<\/a> ETH\u2019s downtrend breakout, affirming that it \u201cmight go absolutely parabolic starting from here.\u201d According to Runefelt, the resistance breakout eyes the $3,000 mark, which was lost during the February retraces.<\/p>\n However, Ethereum has lost its short-term momentum, retracing its 24-hour gains in the past few hours. Its price dropped<\/a> below the $1,600 mark into the key $1,500 support level, trading around the $1,570-$1,580 price range.<\/p>\n This retracement could hint that ETH\u2019s recovery failed to gain strength, risking a drop to the current level\u2019s lows. However, a bounce from this zone to hold the $1,650 mark could confirm the breakout and propel the cryptocurrency\u2019s price toward $1,700-$1,800 resistance.<\/p>\n Analyst Ali Martinez considers<\/a> that ETH\u2019s new rally won\u2019t start again until it breaks through the $2,330 supply wall, where over 12.6 million addresses purchased around 68-63 million ETH.<\/p>\nIs The ETH Bottom Close?<\/h2>\n