Ethereum (ETH) has bounced back from its recent low and is now facing important resistance levels. In the next few trading sessions, we will find out if buyers can keep up the momentum or if sellers will push the price down.
Below is a technical breakdown of Ethereum’s current market structure across important timeframes, plus a look at key derivatives and sentiment indicators.
1. The Daily Chart: Structure Improves, But Major Supply Awaits
The daily chart shows ETH holding above a previously broken downward trendline, which confirms that the medium-term market structure is stronger than it was during the sharp selloff in June. Since breaking out, Ethereum has formed higher highs and higher lows while staying above the main support zone between $1.76K and $1.82K.
Even with this positive setup, buyers are now facing a strong technical barrier:
- Immediate Supply Zone ($1.88K – $1.91K): This is the first major level of selling pressure holding back further gains.
- 100-Day Moving Average (~$1.95K): The falling 100-day moving average is just above the immediate supply zone, adding to the technical resistance in this area.
- Long-Term Target ($2.00K – $2.15K): If ETH breaks above $1.95K, it could move up to test the wider supply zone between $2.00K and $2.15K.
Key Level to Watch: As long as ETH holds above the $1.76K to $1.82K range, buyers retain the short-term advantage. A daily close below $1.76K would invalidate the bullish structure and expose lower support between $1.55K and $1.64K.
2. 4-Hour Timeframe: Short-Term Momentum Begins to Falter
Looking at the 4-hour chart, Ethereum has recently dipped just below the rising trendline that supported its July recovery:
- Loss of Trendline Support: Although the move below the rising trendline isn’t final, it shows that bullish momentum is fading in the $1.88K–$1.91K supply zone.
- Bearish Scenario: If ETH stays below the broken trendline, it could pull back further toward the $1.76K–$1.79K demand zone, where buyers may step in.
- Bullish Reclaim: If buyers push ETH back above the rising trendline and break through $1.91K, the price could rally toward $1.95K to $2.00K.
3. Derivatives Sentiment: The $1.5K Liquidity Magnet
On-chain derivatives data, especially the 1-month Binance ETH liquidation heatmap, shows a lot of resting liquidity near the $1.5K level.
- Liquidity Sweeps: During corrections, markets often move toward areas with many stop-losses and liquidation levels.
- Leverage Flush Risk: If ETH cannot break above resistance and falls below its $1.76K support, the closing of leveraged long positions could cause a drop toward the $1.5K liquidity pool.
Key Takeaways for Traders
- Watch the Breakout Zone ($1.88K – $1.91K): A clear move above this resistance could open the way to $1.95K or higher, but a rejection means a pullback is still possible.
- Protect the $1.76K Support: If ETH loses this level, the short-term outlook turns bearish, and the chance of a drop to $1.64K or lower goes up.
- Keep Derivatives Risk in Mind: With high liquidity at $1.5K, downside volatility could rise quickly if leveraged positions are caught off guard.
