Ethereum is currently trying to recover after months of bearish pressure, though caution is advised due to key resistance levels and liquidation dynamics.
**Technical Analysis**
By Edris Derakhshi
**The Daily Chart**
On the daily chart, ETH has rebounded from the $1,900 support zone and is moving towards the $2,200 resistance area. However, it remains below the 200-day moving average around $2,900, which is a significant obstacle. The RSI is gradually increasing but hasn’t yet reached the overbought zone. Unless ETH breaks above $2,400 and sustains that level, the downtrend structure persists, with $1,900 and $1,600 serving as critical support levels.
**The 4-Hour Chart**
The 4-hour chart shows Ethereum forming an ascending channel, moving towards the upper boundary near $2,150. This strong rally from the $1,900 support zone faces multiple resistance levels, including the $2,200 zone marked by previous breakdowns. The RSI has entered the overbought region, indicating potential exhaustion. Breaking above $2,200 could turn the short-term outlook bullish, while rejection may send ETH back to the $1,900 zone.
**Sentiment Analysis**
By Edris Derakhshi (TradingRage)
**Long Liquidations**
The long liquidations chart shows a sharp spike in recent months, especially during ETH’s fall below $2,000. These mass liquidations eliminated leveraged long positions, increasing volatility. While liquidation events have calmed, the market remains susceptible to sharp moves if leverage builds again. Previous spikes suggest fragile sentiment among speculators, and rejection at resistance zones could trigger another round of long liquidations, adding bearish pressure. Achieving price stability and a sustainable recovery will require reducing excessive leverage and boosting spot-driven demand.
#Ethereum #CryptoMarket #TechnicalAnalysis
