Ethereum has stabilized after a sharp correction from its May high of $2.4 million, and the price is trying to gain momentum against significant resistance. Both the daily and 4-hour charts suggest that buyers are gradually regaining control, but a definitive breakout above the current supply zone would be needed to confirm that. Aggressive positioning in the futures market also presents an interesting picture.
Ethereum Price Analysis: Daily Chart
In terms of time frame of the day, $ETH It continues to recover after breaking out of a secular downward channel that had limited price movement for several months. Following the breakout, the market experienced a significant retracement towards the $1.5,000 demand area before buyers aggressively pulled back.
caused by rebound $ETH We return to the $1.85,000 resistance zone, which is the first major obstacle. This region also closely coincides with higher channel resistance, creating a strong technological confluence that explains recent integration.
The 100-day moving average and 200-day moving average are still overhead around $2,000 to $2,2000, indicating that the broader trend has not yet completely shifted to the bullish direction. Until these averages recover, the recovery should still be seen as a corrective move within a larger neutral to bearish structure.
After recovering from the oversold situation, the RSI recovered above 50 and momentum improved significantly. However, the indicator remains below overbought territory, suggesting there is still room for continuation if buyers can overcome the current resistance.
A successful breakout above $1.85,000 could expose the next resistance zone around $2,000 to $2.2,000, where both major moving averages converge. On the downside, losing the $1.5,000 support could lead to an extended bearish trend.
$ETH/USDT 4 hour chart
Lower time frames indicate a more constructive situation. Ethereum is trading within an ascending channel, producing a series of lows while repeatedly testing the overhead supply zone between approximately $1.8,000 and $1.85,000.
The rising lower trendline continues to provide dynamic support, with each pullback attracting buying interest before reaching the broader support area around $1.7,000. This suggests that buyers remain active despite repeated rejections due to resistance.
Price is currently compressed between rising support and horizontal resistance, creating conditions for an eventual breakout. Such structures often precede increased volatility, making the current range particularly important.
A confirmed move above $1,85,000 could trigger new bullish momentum towards the psychological $2,000 level and potentially the $2,2,000 area. Conversely, a breakdown below the uptrend line could invalidate the short-term bullish structure and expose the $1.71,000 support zone, followed by a broader $1.63,000 order block if selling pressure accelerates.
The 4-hour RSI remains near neutral territory, reflecting balanced momentum after cooling off from recent highs. This supports the view that the market is waiting for a trigger before choosing its next direction.
sentiment analysis
The taker-buy-sell ratio remains below the neutral threshold of 1.0, indicating that active sellers continue to slightly outnumber active buyers across futures exchanges. Historically, readings below 1 reflect cautious market sentiment and declining confidence among bulls.
However, the 30-day moving average for the same ratio has turned higher after recovering from recent lows, suggesting selling pressure is gradually easing. Although buyers have not yet established a clear advantage, the improving trend indicates strengthening demand behind the scenes.
As this ratio continues to rise towards 1.0 and eventually exceeds 1.0, $ETH A break above the $1.85,000 resistance area would provide further confirmation that buyers are regaining control. Until then, the sentiment data does not indicate complete confirmation of the bullish trend, but rather supports a cautiously optimistic outlook.
