Ethereum remains trapped below a major higher-timeframe resistance cluster despite recovering strongly from its June lows. The recent rejection near local highs has pushed the asset back into an important support zone, while the price is approaching a technical decision point that should determine whether buyers can extend the recovery toward higher resistance or whether another corrective leg unfolds.

ETH Price Analysis: The Daily Chart

On the daily timeframe, ETH continues to trade below the descending 100-day and 200-day moving averages, confirming that the broader market structure remains bearish despite the recent rebound.

The asset recently failed to sustain a move above the short-term resistance around $1.9K and has now pulled back into the $1.75K-$1.85K demand zone. This region has acted as support throughout the current recovery and now represents the first line of defense for buyers.

As long as Ethereum holds above this area, another push toward the major decision zone between $2K and $2.15K remains possible. This region also aligns with the descending long-term trendline and the declining 100-day moving average, making it the most significant resistance cluster on the daily chart.

A successful breakout above this confluence would mark an important structural improvement, while rejection would likely shift attention back toward the long-term demand zone around $1.45K-$1.55K.

ETH/USDT 4-Hour Chart

The 4-hour chart shows Ethereum pulling back after failing to extend above the recent swing high near $1.95K. The correction has pushed it back to the short-term demand zone around $1.76K-$1.84K, which has repeatedly attracted buyers over the past week.

This area now serves as the immediate support needed to preserve the sequence of higher lows established since early July. Holding above it could allow another attempt toward the upper boundary of the current recovery structure and eventually the daily resistance around $2K.

However, losing this demand zone would likely expose the lower support levels around $1.7K before buyers attempt another recovery.

Sentiment Analysis

The liquidation heatmap highlights a large concentration of short liquidations positioned above the current market, with the most notable liquidity cluster sitting around the $1.95K-$2K region.

Importantly, this liquidity pool aligns closely with the key technical resistance visible on both the daily and 4-hour charts. The cluster sits directly beneath the higher-timeframe supply zone around $2K-$2.15K and near the descending trendline, creating a strong confluence between derivatives positioning and technical resistance.

This alignment increases the probability that Ethereum could first stage an upside liquidity grab into the $1.95K-$2K area to sweep leveraged short positions before facing renewed selling pressure from the overhead supply zone. A decisive breakout through both the liquidity cluster and the daily resistance would invalidate this scenario and instead strengthen the case for a broader bullish reversal.

Source: CryptoPotato