{"id":30069,"date":"2026-06-08T11:56:18","date_gmt":"2026-06-08T10:56:18","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/06\/08\/ethereum-rebounds-1661-technical-analysis-eth\/"},"modified":"2026-06-08T11:56:21","modified_gmt":"2026-06-08T10:56:21","slug":"ethereum-rebounds-1661-technical-analysis-eth","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/ethereum-rebounds-1661-technical-analysis-eth\/","title":{"rendered":"Ethereum Bounces Above $1,600: Brief Spike or Real Reversal?"},"content":{"rendered":"\n

Ethereum<\/strong> (ETH<\/strong>) bounced back on Monday, gaining +1.30%<\/strong> over 24 hours to reach $1,661<\/strong>, outperforming a near-flat Bitcoin<\/strong> market. The move comes despite persistent weakness across traditional risk assets, with traders largely attributing the rally to a short squeeze<\/strong> that triggered a wave of liquidations. The central question remains unanswered: is this a simple bullish retracement<\/strong> or the beginning of a genuine structural rally<\/strong>?<\/p>\n\n\n\n

ETH at $1,661: Technical Structure Under the Microscope<\/h2>\n\n\n\n
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\"Ethereum<\/figure>\n\n\n\n<\/figure>\n\n\n\n

Ethereum’s return above the $1,600<\/strong> threshold is technically significant. This level represents a major psychological support<\/strong> zone that has been tested multiple times during the recent weeks of correction<\/strong>. As long as price holds above it, the market structure remains defensible for buyers.<\/p>\n\n\n\n

On the indicators side, the RSI<\/a><\/strong> on the daily chart is recovering from oversold territory, signaling a gradual return of buying pressure. The MACD<\/a><\/strong>, meanwhile, is showing an early convergence between its lines, though it has yet to confirm a clear bullish crossover. These signals remain fragile and require confirmation across several consecutive closes.<\/p>\n\n\n\n

The next key resistance<\/strong> sits around $1,750<\/strong>, a zone where sellers have historically regained control during recent bounces. A breakout<\/strong> above this level would open the door toward the $1,900<\/strong> area, a former support that has acted as resistance since the start of the 2025 bear market<\/strong>.<\/p>\n\n\n\n

Short Squeeze or Structural Reversal: Two Scenarios<\/h2>\n\n\n\n

Bullish scenario:<\/strong> if Monday’s short squeeze<\/strong> extends and attracts spot buyers, ETH<\/strong> could consolidate above $1,650<\/strong> before mounting an assault on the $1,750<\/strong> resistance. Rising volume accompanying the move would reinforce the case for a genuine rally<\/strong>, potentially fueled by renewed institutional interest in Ethereum<\/a> and Ethereum ETFs<\/a><\/strong>.<\/p>\n\n\n\n

Bearish scenario:<\/strong> conversely, if the bounce fades quickly below $1,700<\/strong> and volume dries up, the move will look more like a technical retracement<\/strong> within a broader downtrend. In that case, a return toward the $1,550<\/strong> support level \u2014 or even $1,480<\/strong> \u2014 remains plausible. Weakness across traditional assets represents a meaningful macro risk for this scenario.<\/p>\n\n\n\n

Analysts remain divided, though several point out that Ethereum<\/strong> retains solid fundamentals: on-chain activity, continued development of the Layer 2<\/a><\/strong> ecosystem, and growing DeFi<\/strong> adoption. These factors differentiate ETH<\/strong> from a purely speculative asset and support the view that the long-term bullish thesis remains intact despite the recent correction<\/strong>.<\/p>\n\n\n\n

Next Target: $1,750 or a Drop Back to $1,500?<\/h2>\n\n\n\n

The short-term verdict will depend on ETH<\/strong>‘s ability to consolidate above $1,650<\/strong> over the next 48 hours. Holding above that level, combined with the MACD<\/strong> flipping into positive territory, would represent a credible entry signal for momentum traders. The $1,750<\/strong> zone then becomes the first realistic target before any hope of a bull run<\/a> toward $2,000<\/strong>.<\/p>\n\n\n\n

On the other hand, a daily close below $1,600<\/strong> would invalidate the short-term bullish scenario and reopen the door to a test of lower support<\/strong> levels. The RSI<\/strong> must hold above 40 to avoid triggering a fresh bearish<\/strong> signal on the daily chart. Traders will also be watching Ethereum ETF<\/strong> flows closely as a gauge of institutional sentiment.<\/p>\n\n\n\n

Ethereum<\/strong> is far from dead \u2014 but it still needs to prove that this bounce is more than a mechanical byproduct of the short squeeze<\/strong>. The next few sessions will be decisive.<\/p>\n\n\n\n

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