Ethereum Price Breaks Short-Term Downtrend as $1,700 Becomes the Next Test

Key Insights:

• Ethereum price has broken above its short-term downtrend and is testing resistance near $1,700.
• A confirmed move above $1,700 could open a recovery toward the $1,850–$1,900 region.
• ETH crypto remains on course for one of its weakest first-half performances despite the rebound.

Ethereum price has moved above its short-term descending trend line after rebounding from the $1,550 region. ETH crypto now trades near $1,675, placing the asset directly below resistance around $1,694 to $1,700.

The recovery comes as exchange balances decline and price returns to an area that has acted as long-term support. Nevertheless, Ethereum price remains inside a broader downtrend after losing several important levels during the latest sell-off.

Ethereum Price Tests the $1,700 Breakout Level

Ethereum’s daily chart showed price recovering after briefly falling near $1,520. The rebound produced higher short-term lows before ETH crypto crossed above the descending trend line formed during the latest decline.

The immediate resistance zone sits between $1,694 and $1,700. Analyst Ted Pillows said a confirmed break above $1,700 could send Ethereum price toward the $1,850–$1,900 region.

That target overlaps with a former support block between approximately $1,830 and $1,873. Since ETH price recently broke below the area, sellers may defend it during any extended recovery.

Another barrier appears near $1,748, followed by the $2,009–$2,030 region. Ethereum price previously consolidated around $2,000 before selling pressure accelerated.

Failure to clear $1,700 could send ETH back toward $1,630. Below that level, support remains concentrated between $1,530 and $1,575.

Exchange Supply Falls by 500,000 ETH

Meanwhile, data shared by Ali Martinez showed that nearly 500,000 ETH left cryptocurrency exchanges during the past week. The withdrawn assets were worth about $800 million based on prices during the measured period.

Exchange balances fell from roughly 15.5 million ETH toward 15 million ETH. Balances later edged higher, but they still stayed below where they began.

Large ETH outflows can point to accumulation, moves into private wallets, staking, or use across DeFi platforms. They also leave fewer coins immediately available for sale on centralized exchanges.

The timing is notable since the withdrawals followed one of Ethereum’s sharpest declines of 2026. Lower exchange supply may support price if spot demand improves.

Still, ETH needs to reclaim $1,700 and $1,748 before the exchange outflows align with a stronger price recovery.

Weak Quarterly Returns Keep Pressure on ETH

Additionally, Ethereum price is heading toward its second-worst first half of a year after 2022. Coinglass data shows ETH declined 29.26% during the first quarter of 2026 and has fallen another 20.78% during the second quarter.

The asset may also record three consecutive negative quarters for only the second time in its history. Ethereum last experienced a similar period of extended weakness during the 2018 bear market.

Its latest decline follows a difficult stretch after ETH traded near $4,800 during the previous market expansion. Price has since lost the $2,400 region, the $2,000 level, and former support near $1,800.

Historical data showed that Ethereum’s average second-quarter return stands at 56.11%, while the median is 15.29%. However, unusually strong gains during earlier cycles influence those figures.

The latest quarterly losses show that the broader market structure remains weak despite the recent rebound.

$1,743 Could Decide ETH Crypto Direction

Notably, Ethereum price is trading inside a wide range, with support near $1,550 and a key recovery level around $1,743. What happens between those two levels could shape the next move.

CryptoWZRD noted that ETH crypto needs to reclaim $1,743 to turn the recent breakdown into a possible false move. That would show sellers failed to keep prices below support.

A daily close above $1,743 could shift attention toward $1,850–$1,900. If momentum builds, ETH may then revisit the former range near $2,000 and the larger resistance area around $2,400.

On the other hand, a rejection below $1,700 would keep pressure on the market. ETH crypto could then slide back toward $1,550, with stronger demand sitting around $1,400–$1,450.

The market, therefore, has two clear paths. A move above $1,743 would support a broader recovery, while a drop below $1,550 would expose Ethereum to another leg lower.

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