Ethereum is trading at around $2.3 million, hovering near its highest price since the February crash. However, the failure to sustain the breakout above the $24,000 resistance zone shows signs of short-term fatigue. While the broad recovery remains intact, repeated failures at this ceiling are becoming a pattern that buyers need to break decisively to change the narrative.
Ethereum Price Analysis: Daily Chart
Price is approaching a truly important confluence on the daily chart consisting of the 100-day moving average and the $24,000 supply zone. $ETH Although it has broken out and closed out of the long-term descending channel for the first time in several months, it has not been able to convincingly follow suit. The dominant narrative for now is that the breakout cannot be sustained.
What prevents the setup from becoming completely bearish is the RSI, which has been rising since February and is currently above 50 on a daily basis. This reflects a steady buildup of bullish momentum behind the scenes. The 200-day moving average (around $29,000) and the $2,8,000 supply zone sit well above and represent the next important targets if a breakout is eventually confirmed. Below, $1.8,000 remains a volatile line, with deeper support levels at $1.6,000 and $1.4,000.
$ETH/USDT 4 hour chart
The 4-hour chart is flashing warning signs that deserve attention. After briefly breaking above $2.4,000 earlier this week, the price quickly reversed and the RSI recorded a clear bearish divergence on this time frame. Signals are visibly marked on the chart. Price made a new high just below $2.5,000, but the RSI made a lower high. This is a classic signal of weakening momentum at resistance.
Since that rejection, the price has returned to around $2,32,000 and currently sits just above the bullish trend line from early April lows around $2,000, with the RSI declining towards $40. The trend line is currently being tested along with recent short-term lows.
If we sustain above these levels, the higher low short-term structure will remain intact, leaving the door open for the next attempt at $2.4,000. Conversely, if a breakdown occurs, the immediate focus will be lower towards the $2,000 psychological level, with the $1.8,000 support band serving as a deeper backstop.
sentiment analysis
Ethereum funding rates present an interesting picture heading into this week. The chart shows that the numbers are mostly negative through April. Although prices have been gradually increasing over the past few weeks, funding rates have not yet shown convincing and consistent positive numbers.
Futures market participants appear to be expecting the price to fail at $2.4 million. However, a breakout could lead to a short-term liquidation cascade, which could quickly push the price towards the next key resistance level at $2.8,000. However, for this scenario to materialize, there would need to be enough demand from the spot market to push prices above the line, or another wave of correction would be imminent.
