Ethereum rallied this week on the back of broader crypto markets, but has now rebounded. facing a technical exam That may decide whether the movement has real strength or not. mere reflection The power of Bitcoin.
Recent technical outlook indicates a shortfall on ETH’s daily candlestick chart as the price continues to stall below the upper end of the ascending channel despite repeated attempts to extend the rally.
Ethereum’s Rise Shows Scarcity
technical analysis Ethereum daily candlestick timeframe chart shows that Ethereum has been trading within an ascending channel since February 2026. In theory, this is a structure that allows bulls to gradually push the price towards the upper limit.
This structure has produced a series of highs and lows, which is usually a good sign. The problem, however, is that ETH has not been able to match the strength of the upper side of the pattern, at least in May.
According to a cryptocurrency analyst named Ardi from social media platform As a result, prices remain about 6% below the channel high, creating a shortfall.
Structure of the day I’m not completely bullish either. ETH has regained its short- and medium-term moving averages, but the 200-day EMA is still above the current price, meaning the recovery is still incomplete.
Even more worrying is the Bitcoin has already achieved What Ethereum doesn’t have. Bitcoin price has reached the upper side of its own channel structure, forming a high near $81,000. This means Bitcoin is leading the market rally more cleanly.
Levels that Ethereum must recover
Based on this analysis, just because Ethereum is trading above its recent lows does not invalidate a bearish shortfall view. According to cryptocurrency analyst Aldi, the real test now is whether ETH price can break above $2,420 and turn that area into support.
What are you looking for in the daily chart price movement? For confirmation motion. A move above $2,420 would be a confirmation move as it would mean buyers are absorbing supply at the top of the current range. Furthermore, above $2,420, Ethereum will reach the upper limit of the channel, which is currently near $2,520.
On the other hand, even if Bitcoin continues to rise, we will only see a weak reaction from ETH. The relationship between Bitcoin and Ethereum has been inconsistent, with Ethereum underperforming Bitcoin so far this year. At the time of writing, ETH is trading at $2,284, down 1.9% in the past 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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