Brutal Sell‑Off Reset the Board

Ethereum’s swift collapse—from just shy of $2 K to lows under $1.4 K—wiped out months of gains. Price now hovers near $1.6 K, trapped below the 21‑, 50‑, and 200‑day EMAs that formed a ceiling through spring.

$1,670: The Pivot Level

Chart watchers fixate on $1,670. A daily candle above that mark could reprise April’s breakout and propel ETH toward $2,000. Failure keeps the coin in a sideways grind where bears and bulls wrestle for control.

Macro Overhang: Rates & Tariffs

Fed guidance turned hawkish after tariff headlines, dampening hopes for imminent cuts. Higher yields generally sap liquidity from speculative assets, implying the macro backdrop still leans bearish for ETH—at least for now.

Valuation Says “Accumulation Window”

Despite gloom, ETH trades under its realized price, a zone that has preceded profitable entries in past cycles. Meanwhile, Ethereum retains the lion’s share of DeFi TVL, evidencing sticky network effects versus rivals.

Political Assist: Capitol Hill Likes Ether

An openly pro‑crypto White House and reports of the Trump family “HODL‑ing” ETH provide a regulatory cushion. Should economic malaise push the Fed back toward easing, a friendlier policy backdrop could supercharge any rally.

History’s Script: Liquidity → Alt‑Season

Every prior alt‑season erupted only after central banks flooded markets with fresh money. Analysts foresee the same sequence: downturn, policy pivot, then an ETH‑led alt‑coin surge. Until that shift, stacking spots trumps chasing leverage.

Trade Setup & Risk Lines

• Support: $1,550–1,600 (lose that, eye $1,350).
  
• Trigger: Daily close > $1,670 on volume.
  
• Targets: $1,900–2,000 first; beyond that, April highs.
  
• Invalidation: Close below $1,550 or a macro shock.
  

Bonus Beta Plays

If risk appetite returns, SOL could triple per some analysts; spicier still is SOLX, a Solana L2 with $30 M raised—prime for momentum if the market turns.

Takeaway

ETH hasn’t escaped the bear’s shadow, but historically cheap levels, network dominance, and a potential liquidity pivot suggest the building blocks of a comeback. For now: accumulate near support, watch $1,670, and keep one eye on the Fed.