Ethereum Surges 21% Before Slamming Into the $1,590 Wall — What’s Brewing Beneath the Surface?

This week, Ethereum made an incredible recovery, rising by over 21% from its crippling fall to $1,380 in less than a few hours. The sharp bounce in Ethereum’s price came shortly after President Donald Trump announced a 90-day hold on tariffs for all countries except China, relieving pressure on the international markets. Crypto markets quickly reacted, with Ethereum being the first to lead a charge higher.

Traders threw in their support of the surprising jump, hopeful it marks a turning point for ETH, but many remained skeptical that it is anything more than short-term noise. While it is great to see some enthusiasm after so long, the ETH price is still below significant resistance zones, leaving the market relatively guarded and in a wait-and-see attitude.

Altcoin Correlation Surges as Ethereum Tries to Regain Its Footing

Across the broader crypto landscape, altcoins continue to face headwinds. Recent data from Glassnode reveals that nearly all major altcoin sectors have been logging consistent losses, creating a market where almost everything moves in sync, mostly downward. Ethereum, although showing signs of strength through its recent surge, hasn’t escaped the trend. ETH price and performance remain closely tied to overall market sentiment. Even Bitcoin, the leading digital asset, has seen similar struggles. This synchronized downturn has made it harder for traders to find clear winners, and while the ETH rally stands out, it’s unclear if this signals the start of a true Ethereum recovery or just a brief relief rally.

Source: X @glassnode

Ethereum’s Recovery Faces a Defining Moment Amid Ongoing Macro Risks

Global uncertainty continues to cast a shadow over risk assets, and Ethereum isn’t immune. The ongoing tensions between the U.S. and China have kept traditional and crypto markets on edge. While this recent ETH price recovery has sparked hope, it is still down more than 60% from its December highs. Some analysts view this Ethereum surge as a potential momentum shift, while others remain skeptical, pointing to lingering macro risks. The next few sessions could be crucial in determining whether this Ethereum recovery will take root or face another setback. Either way, ETH price action is poised at a tipping point, with technical signals needing strong confirmation before calling it a true turnaround.

ETH Price Action Analysis of April 12th, 2025

Ethereum’s 5-minute chart paints a picture of a market that started off strong, climbing steadily inside an upward channel before spiking toward the $1,590 mark. That spike, though impressive, was short-lived; ETH quickly pulled back after hitting resistance, showing that sellers are still defending that level. Since then, the prices continue to struggle to pass through the resistance level and have been moving sideways between $1,540 and $1,580. That $1,540 zone has acted as a solid floor, with buyers stepping in multiple times to stop the price from falling further. But even with that support, the upside momentum seems to have cooled for now.

Chart 1, Analyzed by Alokkp0608, published on April 12th, 2025

Looking at the RSI, it has entered the overbought zone several times throughout the session, suggesting strong but short-lived bullish bursts.  There was one clear oversold dip earlier, which sparked a decent bounce, right when a golden cross showed up on the MACD. Since then, momentum has been shifting back and forth, with a series of golden and death crosses playing out. Right now, MACD is favoring the bulls again, with a rising histogram and a fresh golden cross. RSI is back above 70, so some caution is needed, but if buyers keep the pressure on, the move might have more legs.

Ethereum Faces Key Resistance as It Struggles for Momentum

The recent Ethereum surge has certainly caught the market’s attention, but the road ahead remains murky. ETH price continues to struggle below the $1,590 resistance mark, even after an impressive bounce. While the $1,540 support level holds firm, traders remain cautious as momentum indicators send mixed signals. This phase could prove pivotal for the next Ethereum recovery. If buyers can maintain pressure, another ETH rally could be on the horizon. But if resistance holds strong, the ETH price may fall back into consolidation. Either way, all eyes are now on how Ethereum responds to the next macro shift and whether this rally is a short-lived spike or the beginning of a more meaningful recovery.