Ethereum’s overall market structure remains seller-dominated, but recent price movements suggest that sellers may be losing momentum after the market held in the $1.5,000 support area twice. The emergence of a potential double dip and improving near-term momentum could pave the way for a bailout rally if buyers recover the next group of resistance.
Ethereum Price Analysis: Daily Chart
In the daily time frame, $ETH is still trading within the same long-term descending channel that has remained in place for months, with both long-term moving averages descending just above the top of the channel. The price remains well below the 100-day and 200-day moving averages, which currently range from $2,000 to $2.2,000, confirming that the macro trend remains bearish.
After a sharp decline a few weeks ago, the cryptocurrency found strong demand within the $1.5,000 support zone. Price has now tested this area twice, increasing the possibility of double-dip formation. Although the pattern has not yet been confirmed, the fact that this support has been defended repeatedly suggests that bearish momentum is fading.
The RSI has also recovered from oversold conditions and is gradually rising towards the midline, indicating that momentum is improving without reaching overbought territory.
To gain confidence in the bullish scenario, $ETH The $1.8,000 resistance zone needs to be regained to validate the double bottom setup. A successful move above this level would also expose the next major supply area around $2,000 to $2.2,000, where the 100-day and 200-day moving averages converge.
Conversely, losing the $1.5,000 support zone could be catastrophic as it would likely invalidate any potential reversal structure and trigger a deeper downtrend within a broader downtrend.
$ETH/USDT 4 hour chart
The 4-hour chart shows the short-term situation more clearly. As buyers retreated into the market, the price built liquidity below the $1.5,000 low, arresting a fall to the low. This demand is gradually increasing $ETH Head towards the first area of overhead supply.
The price is now approaching a significant fair value gap of approximately $1.7K. This imbalance is consistent with the recent bearish impulse and is likely to attract selling interest. A definitive breakout above this zone could indicate an improvement in near-term strength and pave the way for the $1.85,000 resistance.
Momentum has improved markedly on the lower time frame as well, with the RSI rising towards bullish territory while making new lows along with the price. This suggests that buyers have regained some control after the recent rally.
However, unless $ETH Even if the fair value gap is successfully closed and higher highs established, the current rally may still be a corrective rebound within a larger bearish trend.
sentiment analysis
The distribution of open interest in options contracts shows that the largest concentration is located near the late December 2026 expiry, where call open interest significantly exceeds put open interest. Several other key deadlines also show clear advantages for call positioning, such as late September and late July.
This bias toward call options suggests that despite Ethereum’s recent weakness, derivatives participants continue to position for higher prices in the medium to long term. At the same time, the real notional value is concentrated around larger expirations, indicating that these dates can be significant volatility catalysts as expiration approaches.
While options positions alone do not guarantee a bullish outcome, the current distribution reflects a market that still maintains long-term upside expectations even though spot prices remain trapped below key technical resistance levels. if $ETH If we confirm the developing double bottom structure and break above the nearby resistance cluster, optimistic option positioning could provide further tailwinds through improving market sentiment.
