Despite Ethereum’s strong recovery from its June lows, it remains trapped below a resistance cluster on key time frames. The recent rejection near the local highs has pushed the asset back into a key support zone, but the price is nearing a technical decision point that will determine whether buyers can extend the recovery towards higher resistance, or whether another correction leg develops.
$ETH Price analysis: daily chart
In the daily time frame, $ETH continues to trade below its declining 100-day and 200-day moving averages, confirming that the broader market structure remains bearish despite the recent recovery.
The asset has recently failed to sustain a move above short-term resistance near $1.9,000 and is now back in the demand zone of $1.75,000 to $1.85,000. This region has acted as support throughout the current recovery period and is now the first line of defense for buyers.
As long as Ethereum remains above this area, a further push towards the major decision zone between $2,000 and $2.15,000 remains possible. This area also coincides with the long-term downtrend line and the falling 100-day moving average, making it the most important resistance cluster on the daily chart.
A successful breakout above this confluence would signal an important structural improvement, but a rejection would likely shift attention back to the long-term demand zone around $1.45,000 to $1,550,000.
$ETH/USDT 4 hour chart
The 4-hour chart shows Ethereum pulling back after failing to break above recent swing highs around $1.95,000. This correction has pushed the price back into the short-term demand zone around $1,76,000-$1,84,000, which has repeatedly attracted buyers over the past week.
This area is currently acting as the immediate support needed to sustain the series of lows established since early July. Above this, further attempts towards the upper bound of the current recovery structure are possible and could eventually lead to daily resistance near the $2,000 level.
However, losing this demand zone could expose a lower support level around $1.7,000 before buyers attempt a further recovery.
sentiment analysis
The liquidations heatmap highlights a large concentration of short-term liquidations above the current market, with the most notable liquidity clusters located around the $1.95,000-$2,000 region.
Importantly, this liquidity pool closely aligns with the key technical resistance found on both the daily and 4-hour charts. This cluster is located near the downtrend line, just below the higher time frame supply zone around $2,000-$2,15,000, creating a strong confluence between derivatives positioning and technical resistance.
This correction increases the likelihood that Ethereum will first seek upside liquidity in the $1.95,000-$2,000 area to clean out leveraged short positions before facing fresh selling pressure from the overhead supply zone. A decisive breakout of both the liquidity cluster and daily resistance would invalidate this scenario and instead strengthen the case for a broader bullish reversal.
