Ethereum is still in a broad correction, trading below major moving averages and within a well-defined descending structure. Short-term stabilization is seen near the support, but the trend on higher time frames remains favorable to sellers unless major resistance levels are regained with strong momentum.
Ethereum Price Analysis: Daily Chart
In the daily time frame, $ETH continues to maintain a descending channel, consistently forming highs below both the 100-day and 200-day moving averages. The recent collapse accelerated prices into the $1,750-$1,800 demand zone and buyers stepped in to slow the decline, but the structure remains bearish overall.
The $2,300-$2,400 region is currently acting as a major resistance cluster, consistent with the previous breakdown level and just below the declining 100-day moving average. unless $ETH If it can regain that zone and break through the upper boundary of the channel, the pullback is likely to be corrected, although the risk of another leg moving towards lower channel support remains.
$ETH/USDT 4 hour chart
In the 4H timeframe, the asset has broken above the $1,800 horizontal support zone and is compressed inside a symmetrical triangle formed from recent lows and lows. This short-term symmetrical contraction reflects indecision rather than a confirmation of a reversal, as the lows remain high.
A breakout of the $2,000-$2,100 highs would be the first signal of a change in near-term momentum and could start a move towards the $2,300-$2,400 resistance band. Conversely, a loss of the $1,800 criterion could invalidate the consolidation theory and trigger new downside pressure towards deeper support levels.
On-chain analysis
Active address data shows a recent spike in network activity, with the 30-day EMA of active addresses surging to multi-month highs. Historically, similar increases in activity have coincided with periods of increased volatility and have often preceded major directional moves.
However, despite the surge in participants, the asset has yet to confirm a bullish reversal. This divergence suggests that while engagement is rising, capital flows are not decisively pushing prices higher, and may indicate panic selling at low prices by weak hands. If activity continues to increase until prices stabilize, it could form a constructive basis. However, a clear break above the key technical resistance level is required for confirmation.
