Ethereum enters compression zone – ETH/BTC chart shows that low volatility may not last long

After weeks of sales pressure and persistent negative sentiment, Ethereum is finally showing signs of life. The Bulls are stepping in, trying to recoup critical price levels and reverse the bearish trend defined in recent months. Despite the update of momentum, ETH still traded at a critical level below $2,000, a level that must be violated to confirm a meaningful shift in the market structure and lay the foundation for a sustained recovery.

When traders evaluate the prospects for Ethereum, their attention also turned to the ETH/BTC ratio, which has reached its lowest volatility level in more than two years. According to top analyst Daan, the indicator has been in a long-term downtrend, but has now stalled for more than a month. Historically, such low volatility periods are often a prerequisite for moving forward in a sharp direction, as the market increases pressure and prepares for breakthroughs or collapses.

While Ethereum’s price remains technically fragile, the combination of reduced volatility, long-term support for the ETH/BTC pair, and new bullish momentum on the dollar chart are creating a cautiously optimistic setup. With the resistance of ETH tests, the next few days will be crucial. The confirmed breakout is over $2,000, which may be a signal that Ethereum’s next leg is about to begin.

Ethereum struggles with risks and uncertainties under $1,900 dominate

Ethereum faces new pressure on May 1 to fail to exceed the height of $1,874 to make the Bulls’ urgent task to restore momentum before the volatility takes over. The asset is currently approaching key support for nearby transactions, and as global markets remain vulnerable, it is impossible to establish a clear direction. As Ethereum’s December highs still fell by more than 55%, the bearish price structure remains intact, and any further weaknesses could trigger deeper aspects.

Macroeconomic uncertainty has fueled market volatility, especially as the United States and China continue to engage in high-risk trade negotiations. Investors are cautious that Ethereum cannot show strength in the broader cryptocurrency recovery, which raises concerns about its near-term prospects.

Daan plus complexity emphasizes that the ETH/BTC ratio is now at its lowest volatility level in two years. Although the ratio has been in a long-term downtrend, it has been stagnant over the past month, indicating a possible breakthrough (or collapse).

Historically, this compression period is usually before a sharp move. However, Dann notes that the trend in the low-time range has not flipped bullish and that any rally should be treated with caution until the trend is ahead of the trend. At present, Ethereum is still in trouble.

Price action details: ETH test

Ethereum is trading at $1,831, with a moderate strength after the recent support of nearly $1,780. On the 4-hour chart, ETH tried to build higher lows and restore Blullish’s momentum, but from May 1 it still faces stiff resistance below the key $1,874. Prices are consolidating above 200-cycle EMA, $1,787,200- period SMA ($1,699) has been a dynamic support and resistance area in recent trading.

The lateral movement highlights the hesitation of indecision, as ETH has difficulty getting out of its range and the volatile compression and volume remain stationary. A clean break above $1,874 could mark the start of a bullish leg target of $2,000. However, areas that do not exceed $1,780-$1,750 may invalidate the structure and open the door to further disadvantages.

Technical indicators show that momentum is being established, but it has not been confirmed yet. The wider bearish trend is still working until Ethereum retracts the $1,900-$2,000 range. For now, ETH is in a key area, with one case for both the Bulls and the Bears, which makes the next few meetings key to determining whether Ethereum continues to recover or resumes its downward trend.

Featured images from DALL-E, charts from TradingView

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