Ethereum remains under pressure over higher time frames, but the latest price action shows early signs that the bearish momentum may be losing strength. While the overall trend remains decidedly bearish, recent moves suggest that sellers may be nearing exhaustion after weeks of sustained downside.
Ethereum Price Analysis: Daily Chart
$ETH‘s recent rejection from the $1.72,000-1.78,000 supply zone triggered further downside, pushing it back into the important $1.46,000-1.53,000 demand area. This zone has acted as support many times throughout June and continues to attract buyers whenever the price approaches it.
The most notable development on the daily time frame is the emergence of a bullish divergence in the RSI. The asset continues to make new lows throughout June, but the RSI has formed a low close to oversold territory. This divergence nevertheless suggests that the downside momentum is weakening. $ETH The rest are near cycle lows.
Although a bullish divergence alone does not guarantee a reversal, it often appears late in a bearish trend and can serve as an early warning that sellers are losing control. only for $ETH If we break above the $1.46,000 to $1.53,000 support area, the divergence is still valid and a relief rally becomes more likely.
However, for confirmation, it would need to break through the nearest resistance zones, specifically the $1.72,000-$1.78,000 supply area. Until then, the overall trend remains bearish despite an improving momentum profile.
$ETH/USDT 4 hour chart
On the 4-hour time frame, Ethereum has been consolidating above the low demand zone over the past few sessions after a sharp drop from resistance.
Since the June 22 rejection, a downtrend line has limited any recovery attempts. However, the asset is currently compressed just below that trend line and volatility continues to shrink. This setup creates the potential for a short-term breakout if buyers can break through the trendline resistance.
If the breakout is successful, it will likely target the $1,72,000-$1,78,000 supply zone where the recent decline started. Such a move would align well with the bullish RSI divergence seen on the daily chart and could lead to the first meaningful recovery rally in weeks.
On the downside, the $1.52,000 area remains an important level to monitor. A loss of this support would invalidate the near-term bullish scenario and return the focus to a deeper downside continuation within the broader downtrend.
For now, Ethereum appears to be trapped between support and descending resistance, and the next direction will likely depend on which side breaks out first.
sentiment analysis
The liquidation heatmap reveals interesting changes in liquidity positioning.
Ethereum is currently trading below these large clusters while liquidity is currently higher than the price and is particularly concentrated between approximately $1.68,000 and $1.80,000. Markets often gravitate toward areas with highly leveraged positioning, making these indirect liquidity pools attractive short-term targets.
This creates a scenario like this: $ETH Liquidity could rise to the upside before a larger directional move develops. A break above the 4-hour downtrend line would increase the chances of price entering these indirect liquidity pockets, triggering a short liquidation and facilitating a squeeze towards the $1.7,000-$1.8,000 area.
At the same time, the heatmap also shows that there is significant liquidity below the market near the lower support area. This means that both sides of the range are still vulnerable to volatility from liquidations.
Combined with a bullish daily RSI divergence and compression below 4-hour trendline resistance, the current setup suggests that Ethereum may first attempt to gain liquidity on the upside before the market determines whether a more sustainable recovery can unfold. The reaction around the $1,72,000-$1,80,000 liquidity cluster is likely to provide important clues regarding Ethereum’s next major trend.
