Ethereum continues to be under pressure on both higher and lower time frames after failing to reclaim key resistance levels.
The asset has broken below a multi-month bullish structure on the daily chart, but continues to trade within a descending channel on the 4-hour chart.
Meanwhile, sentiment data suggests there are still few active buyers.
Ethereum Price Analysis: Daily Chart
In terms of time frame of the day, $ETH It decisively broke below the large ascending triangular structure that had formed from February to May. This move came after multiple rejections from the $2.4,000 resistance zone, which coincides with a major horizontal supply area and a previous breakout region.
This bearish move has pushed the price below its 100-day moving average, which is currently around $2.2 million. More importantly, $ETH It remains well below its declining 250-day moving average of around $2.5 million. This shows that broader trends continue to favor sellers.
The recent rejection from the $2.4,000 zone confirms it to be a major resistance area. only for $ETH If it remains below this area, any recovery attempt could be seen as a correctional pullback rather than a trend reversal.
On the downside, the next major support lies around the $1.8,000 zone, highlighted by the blue demand area and the February swing low. A daily close below the current $2,000 psychological support could increase the likelihood of a move towards that region.
Momentum indicators also remain weak. The RSI is hovering near oversold territory, reflecting sustained bearish momentum despite recent stabilization near $2,000.
$ETH/USDT 4 hour chart
The 4-hour chart shows a clear downward channel that drove price action downward throughout May. $ETH After failing to sustain a meaningful recovery from the mid-resistance region, it is once again moving towards the lower end of the channel.
Prices are currently trading around $2,000, making it a key demand zone for the market. The sector has shown a modest reaction so far, with buyers yet to generate a convincing reversal signal.
The first resistance level is the top of the descending channel and the horizontal supply zone, located around $2.15,000. Beyond that, the main resistance remains at $2.25,000, followed by an upper supply zone around $2.4,000.
A break above the descending channel could lead to a short-term relief rally towards the $2.15,000 and $2.25,000 regions. However, as long as the channel structure is intact, the path of least resistance appears to be tilted downward.
Conversely, a loss of the $2,000 support zone would reveal the lower bound of the channel extension and increase the likelihood of a deeper correction towards the $1.8,000 area identified on the daily chart.
sentiment analysis
Ethereum Taker Buy Sell Ratio provides further insight into current market sentiment. This metric measures the balance of active buyers and active sellers across exchanges. A value greater than 1 indicates a buyer advantage, and a value less than 1 indicates that sell orders outnumber buy orders in the market.
The graph shows a continuous decline in the ratio over recent months, with the indicator currently hovering around 0.98, below the neutral threshold of 1.0. This shows that sellers nevertheless continue to dominate order flow. $ETHlong-term fix.
For a sustainable recovery to proceed, traders will need the taker-buy-sell ratio to recover and remain above 1. Until that happens, order flow suggests that bullish momentum is limited and the rally could remain under significant selling pressure.
