The second-largest crypto globally in terms of market capitalization, Ethereum (ETH), is demonstrating fresh resilience following its recovery off critical support at $2,100 on Sunday.

The comeback has brought a new hope among the investors who are currently speculating the likelihood of a price rally in the near future. Ethereum, however, has shown a significant degree of volatility, declining 14 percent over the last week to trade at approximately $2,246 despite a robust 42 percent rally in May.

The crypto temporarily fell down to $2,131 on Sunday night but has promptly recovered to surpass the $2,200 mark, which has been labeled as an unusual fallout by some analysts.

Geopolitical Tensions Impact Crypto Market Trends

Price movement and technical indicators are what market analysts are keenly surveilling, implying Ethereum might soon perpetuate the path to either boom or collapse.

The recent trends in the price can be compared with the tendencies across crypto markets where the tension in geopolitics and uncertainty in the global economy caused sudden shifts.

The current market cap of Ethereum, standing at $271 billion, testifies to its leading role in the altcoin market and the many dApps and smart contracts on its platform.

Ted Pillows, a crypto analyst and trader, believes the bulls have a high chance to enter a new rally by conquering the $2,350 range. Unless Ethereum flips the former $2,350 range low to upside, he warned, it would retest the start of impulse or lower.

The current recovery above the $2,100 mark has fueled widely held expectations that the Ethereum might target stronger resistance, with possible highs of up to $2,500 and perhaps above, assuming that the bulls sustain their rally.

Nevertheless, analysts say technical analysis is more of a rule of thumb than a definite indicator to the speculative and shifting cryptocurrency market.