Ethereum $1,900 Retest Could Decide Next Major Move – Is ETH Preparing For New Lows?

As most of the crypto market retests crucial levels, Ethereum (ETH) is attempting to reclaim a major horizontal area. Some market observers have warned that cryptocurrency could fall to new lows if the price doesn’t bounce soon.

On Thursday, Ethereum dropped 1.4% to retest a key area for the second consecutive day. After hitting a 10-month low of $1,747, the King of Altcoins bounced more than 15% to trade between $2,000 and $2,150 over the past few days.

However, the second-largest cryptocurrency by market cap failed to hold the crucial $2,000 horizontal barrier on Wednesday and tested the $1,900 mark for the first time in a week.

According to the post, the recent correction has sent Ethereum toward a three-year rising support line, which “will decide the next big move.” The analyst warned that “If the trendline breaks with strong weekly closes below $1,900, the structure weakens.”

Trader AlejandroXBT shared a potential macro-outlook for Ethereum that suggests the cryptocurrency could still see another major shakeout:

My thesis is that the major bullish move that began around 2019–2020 has transitioned into a large and prolonged macro correction, and that Ethereum has been consolidating within this broader corrective structure ever since.

According to the market observer, the strong rally that followed the 2022 bear market appears to be a “counter-trend move within a broader corrective range” rather than a renewed bull market and the start of a new long-term cycle.

Therefore, the current macro structure would suggest that a final shakeout phase could “still be required to fully reset sentiment and liquidity before Ethereum can transition into a new impulsive bullish cycle.”

Based on this, the trader anticipated a final liquidity-driven move to the downside in the coming months, followed by “the moon” phase, potentially next year, when “the structure suggests the conditions for a true long-term bullish continuation, with price discovery and expansion well beyond previous highs.”