Ethereum has stabilized after its sharp correction from the $2.4K May highs, with the price attempting to build momentum beneath major resistance. Both the daily and 4-hour charts suggest buyers are gradually regaining control, although confirmation will require a decisive breakout above the current supply zone. The futures market’s aggressive positioning is also pointing to an interesting situation.
Ethereum Price Analysis: The Daily Chart
On the daily timeframe, $ETH continues to recover after breaking out of the long-term descending channel that had capped the price action for several months. Following the breakout, the market experienced a deep retracement toward the $1.5K demand region before buyers stepped back in aggressively.
The rebound has brought $ETH back into the $1.85K resistance zone, which now serves as the first major obstacle. This area also aligns closely with the higher channel resistance, creating a strong technical confluence that explains the recent consolidation.
The 100-day and 200-day moving averages remain overhead near the $2K to $2.2K region, indicating that the broader trend has not fully shifted bullish yet. Until those averages are reclaimed, the recovery should still be viewed as a corrective move within a larger neutral-to-bearish structure.
Momentum has improved noticeably, with the RSI recovering above 50 after rebounding from oversold conditions. However, the indicator remains below overbought territory, suggesting there is still room for continuation if buyers can overcome current resistance.
A successful breakout above $1.85K could expose the next resistance zone around $2K to $2.2K, where both major moving averages converge. On the downside, losing the $1.5K support would likely lead to a prolonged bearish trend.
$ETH/USDT 4-Hour Chart
The lower timeframe presents a more constructive picture. Ethereum has been trading inside a rising channel, producing a sequence of higher lows while repeatedly testing the overhead supply zone between roughly $1.8K and $1.85K.
The ascending lower trendline continues to provide dynamic support, with every pullback attracting buying interest before reaching the broader support area near $1.7K. This suggests buyers remain active despite repeated rejection from resistance.
The price is currently compressing between rising support and horizontal resistance, creating conditions for an eventual breakout. Such structures often precede a volatility expansion, making the current range particularly important.
A confirmed move above $1.85K would likely trigger renewed bullish momentum toward the psychological $2k level and potentially the $2.2K region. Conversely, a breakdown below the rising trendline could invalidate the short-term bullish structure and expose the $1.71K support zone, followed by the broader $1.63K order block if selling pressure accelerates.
The 4-hour RSI remains around neutral territory, reflecting balanced momentum after cooling from recent highs. This supports the view that the market is waiting for a catalyst before choosing its next directional move.
Sentiment Analysis
The Taker Buy Sell Ratio remains below the neutral 1.0 threshold, indicating that aggressive sellers continue to slightly outweigh aggressive buyers across futures exchanges. Historically, readings below one reflect cautious market sentiment and reduced conviction from bulls.
However, the 30-day moving average of the ratio has turned higher after recovering from recent lows, suggesting selling pressure has gradually eased. Although buyers have not yet established clear dominance, the improving trend points to strengthening demand beneath the surface.
If the ratio continues climbing toward and eventually above 1.0 while $ETH breaks above the $1.85K resistance area, it would provide additional confirmation that buyers are regaining control. Until then, the sentiment data supports a cautiously optimistic outlook rather than signaling a fully confirmed bullish trend.
