Ethereum is showing new signs of strength as the price breaks through a key resistance level and futures traders add new long positions. Still, analysts say the recovery is only a short-term recovery and could see even lower prices in the second half of 2026.
Ethereum breakout holds, but analysts warn of new lows
Ethereum While it may be trying to recover, one analyst said the move still does not confirm a reversal of the broader trend.
In a chart shared with X, Ted Pillows said: $ETH It broke through the $2,150-$2,200 resistance zone. The chart shows Ethereum trading near $2,257 versus Tether on the daily time frame. Also, if the price breaks above the breakout area, it will mark $2,400.73 and $2,624.07 as the next resistance levels.
Ethereum breaks through a major resistance zone. sauce: Ted Pillows of X
According to the same post, Ethereum needs to sustain above $2,200 to sustain the short-term structure. If that happens, the asset could move towards last month’s highs. The chart also shows a possible upward path, first towards the $2,400 area and then towards the $2,624 area.
Still, the analyst cautioned against interpreting the move as the start of a new bull market. meanwhile $ETH The post said that despite breaking above the highlighted resistance band, a new low could still come in the second or third quarter of 2026. This means that the current pullback may just be a temporary recovery within a larger weak trend.
The charts support that cautious view. $ETH It remains well below the previous high shown near the top of the range. Additionally, this image highlights the lower support area around the $1,750 to $1,800 zone, suggesting that downside risk remains if the breakout fails.
For now, the $2,200 level stands out as an important line to watch. If Ethereum breaks above that, the bulls could try to push towards $2,400 and then $2,624. however, $ETH A break below that level could weaken the recovery regime and bring the lower support zone back into focus.
Inflows into Ethereum futures increase as net longs and OI rise
According to a post by user CW, activity in the Ethereum futures market is picking up again as new funds appear to be moving into long positions.
Ethereum futures open interest and net long positions rose. sauce: TradingView, CW on X
The post said money was flowing in. $ETH Futures markets are rising again. At the same time, net long positions and open interest are both increasing. This combination usually indicates that more traders are entering the market, and many of them are positioning for further upside.
In the derivatives market, open interest tracks the total number of active futures contracts. When open interest rises at the same time as net long, it often means that traders are not only closing out old positions, but also adding new bullish exposure. Therefore, this move could indicate increased confidence in Ethereum’s near-term price direction.
Still, rising open interest does not guarantee that prices will continue to rise. This just shows that more leveraged positions are being built. If Ethereum fails to maintain key support levels, those positions could quickly unwind, increasing downside pressure.
Overall, this post is $ETH Futures markets improved. More money is flowing in and traders are going long. However, whether it turns into a sustained rally will depend on the strength of the spot price and whether Ethereum can sustain above nearby support levels.
