Ethereum jumped 4% on Monday, trading at $1,739 as the Hormuz peace deal injected fresh tailwinds into risk assets. The bounce came after ETH hit a swing low of $1,603 and reversed sharply, climbing back above $1,731 before consolidating around the 23.6% Fibonacci retracement of that range. With Bitcoin reclaiming $65,000, the broader crypto market is breathing easier — but the move hasn't convinced everyone.
The bounce in numbers
The rally from $1,603 to $1,731 represents about an 8% gain in a matter of hours. ETH is now testing resistance at $1,734, with further levels at $1,715, $1,701, and $1,690. On the downside, near-term support sits at $1,665 and $1,640. The 24-hour trading volume hit $26 billion against a market cap of $210 billion — healthy turnover for a Monday.
CoinCodex projects a possible high near $1,845 within days, but that forecast depends on momentum holding through the week.
What the momentum says
Analyst Ash Crypto pointed out that ETH's monthly RSI is now more oversold than it was at the bottom of the 2018 and 2022 bear markets. Ethereum is down about 70% from its all-time high, a drawdown that historically has preceded strong recoveries — though not always immediately. The RSI reading is a contrarian signal, but one that has worked twice before.
The bounce itself looks technically clean: ETH reclaimed the 23.6% Fib level and is holding above it as support. That's the first step traders want to see after a swing low.
Why $1,603 matters
The entire bullish setup rests on that $1,603 low holding. A daily close below that level would invalidate the bounce thesis, opening the door to declines toward $1,585 or lower. That's not the kind of risk traders want to see near a macro low, especially when peace-deal euphoria can fade fast.
The Hormuz deal gave the market a reason to buy, but it didn't fix the underlying pressure on ETH. If the macro story turns again, $1,603 will be the line in the sand.
In other markets, LiquidChain, a Layer 3 infrastructure project, continues its presale at $0.0147, having raised $841,128.18 to date. That's a separate story, but it shows that capital is still flowing into early-stage crypto — even as ETH struggles to find a lasting bid.
