Ethereum remains under persistent selling pressure after failing to reclaim key resistance zones, with recent price action pointing to weakening bullish momentum and a growing probability of deeper retracement. The market is now testing critical support levels that could determine $ETH’s next major move.
Ethereum Price Analysis: The Daily Chart
Ethereum has extended its corrective phase after repeated failures to sustain momentum above the $2.3K–$2.4K resistance region. The asset recently lost the 100-day moving average near $2.15K and is now hovering around the lower boundary of the broader ascending channel at the $2K area, signaling increasing bearish dominance in the medium term.
This rejection suggests that sellers remain active during every recovery attempt. If $ETH fails to defend the current channel support, a sharper decline toward the major demand region around $1.8K becomes increasingly likely.
On the upside, reclaiming the $2.4K resistance would be required before considering any meaningful shift in sentiment. Until then, the broader structure favors continued consolidation or downside pressure.
$ETH/USDT 4-Hour Chart
On lower timeframes, Ethereum has confirmed a bearish breakdown below the ascending wedge structure that had contained the price action for several weeks. Following the breakdown, $ETH attempted a recovery toward the lost trendline but faced immediate rejection, validating the breakout and reinforcing bearish continuation scenarios.
The recent selloff has now pushed the price toward a key support zone around $2.1K, where short-term buyers are attempting to stabilize the market. This region aligns with a notable demand block and the lower boundary of the broader rising channel, making it an important level to monitor.
If this support fails, the next downside target could emerge around the $2K-$2.05K area. Conversely, holding above current levels may trigger a temporary rebound, though significant resistance remains overhead near $2.2K and later $2.4K.
Sentiment Analysis
The 3-month liquidation heatmap reveals a substantial concentration of liquidity resting above the current price, particularly around the $2.45K-$2.5K region. Historically, markets tend to gravitate toward large liquidation pools as they provide fuel for volatility and position unwinding.
However, in the short term, Ethereum has begun tapping liquidity pockets below current levels near $2.05K-$2.1K while bearish momentum remains dominant. This suggests downside pressure could persist before any larger recovery attempt toward upper liquidity clusters occurs.
The imbalance between nearby downside liquidity and heavier long-term clusters overhead points to elevated volatility ahead. Whether $ETH first sweeps lower support zones or stages a recovery toward $2.5K will likely depend on how price reacts around the current $2.1K demand area.
