Ethereum again falls below the $1,700 threshold! What are analysts watching next?

Critical support revisited after February lows

Market observer Daan Crypto Trades highlighted that Ethereum moved slightly under the lows set in February during the recent drop, but buyers stepped in to defend the $1,730 to $1,750 range. This area had also served as vital support during February’s intense sell-off.

According to Daan Crypto Trades, the latest movement in Ethereum carries all the hallmarks of a typical liquidity sweep—a move where the price briefly dips below a well-known support to trigger stop-loss orders and force the closure of leveraged positions. As these orders are executed, a snapback or recovery rally often occurs when new buyers enter the market.

Mini glossary: A liquidity sweep refers to a brief move beyond prominent support or resistance levels, triggering orders and then swiftly reversing. FVG denotes a price gap in charts that receives low trading activity, considered by some investors as potential support or resistance zones.

Daan Crypto Trades emphasized that the lower boundary of the current range is key for market players expecting upward momentum. If this support holds, Ethereum could remain in its wide trading band established since February.

Chart analysis brings attention to robust resistance between $2,340 and $2,380 above. Ethereum failed to break this ceiling in both April and May, leading to accelerated selling pressure after each rejection. During the recent decline, trading volumes spiked, signifying that the retest of support occurred amid heightened market activity.

Could a drop below $1,700 trigger new risks?

In a separate analysis, Team LAMBO stated that Ethereum reached its first downside target near $1,750, but the response in this region has yet to confirm a decisive trend reversal. The area spanning $1,700 to $1,800 remains critical for short-term direction.

Several technical factors are converging within this crucial band. The 0.882 Fibonacci retracement level lines up at $1,803, while a weekly FVG zone hovers around $1,700. This confluence suggests the potential for renewed buying interest and highlights the importance of these levels.

Team LAMBO further noted that Ethereum has been trading inside a downward-sloping channel since late 2025. Recent attempts to break above this channel’s upper boundary were rejected, fueling the latest slide lower.

Team LAMBO expressed a neutral short-term outlook. A weekly close above $1,900 might bolster confidence, while a sustained move below $1,700 could shift focus toward the weekly support at $1,600.

Consensus among analysts suggests that if Ethereum maintains its key support levels, the price could continue to seek balance within the broader trading range. However, a decisive break below February’s lows might erode market structure and intensify selling pressure.