Ethereum has staged a notable recovery from its June lows. It has reclaimed some important support levels and is now pushing toward a major technical barrier. While short-term momentum continues to favor buyers, the broader trend remains challenged by overhead resistance and a still-negative Coinbase Premium Index, suggesting institutional demand from U.S. investors has yet to fully return.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, ETH has rebounded sharply after defending the $1.5K demand zone, where buyers repeatedly stepped in to halt the broader downtrend. The recovery has carried price back above the descending channel’s higher boundary.

The price is also approaching an important confluence of resistance. The descending trendline aligns closely with the 100-day moving average, while the 200-day moving average remains higher around the $2.2K region. These dynamic resistance levels reinforce the nearby horizontal supply zones at $2K and $2.4K. This confluence makes this area the primary obstacle before any larger bullish reversal can develop.

Momentum has also improved considerably, with the RSI climbing toward the upper half of its range, reflecting strengthening buying pressure without yet reaching overbought territory. As things stand, the path toward the $2K to $2.2K resistance area is open. Yet, a rejection from this zone would keep the broader bearish structure intact and increase the likelihood of another retracement back inside the channel and toward the $1.5K support zone.

ETH/USDT 4-Hour Chart

The lower timeframe shows a much more constructive market structure. ETH has been producing higher highs and higher lows while respecting an ascending channel that has supported the advance throughout June and July.

After rebounding from the $1.7K short-term demand zone, the price accelerated toward the upper boundary of the large channel, where it is currently consolidating around $1.9K. This places ETH directly beneath a key resistance trendline that has capped rallies over the past several weeks.

The immediate support lies around $1.76K, where a previous resistance zone has flipped into support. Holding above this region and the short-term rising trendline would preserve the current bullish structure and keep the focus on another attempt to break above the channel resistance near $1.95K.

A successful breakout could trigger a continuation toward the psychological $2K level, while a loss of the ascending trendline would likely shift momentum back in favor of sellers and expose the $1.7K support area once again.

Sentiment Analysis

The Coinbase Premium Index continues to paint a more cautious picture despite ETH’s recent price recovery. Although the metric has rebounded from its deeply negative readings seen earlier this summer, it remains below zero, indicating that Ethereum continues to trade at a discount on Coinbase relative to offshore exchanges.

Historically, sustained positive readings have reflected stronger buying activity from U.S.-based institutional participants. The current negative premium suggests that this segment of the market has not yet returned aggressively, even as price attempts to establish a short-term uptrend.

This divergence implies that the ongoing recovery is being driven primarily by broader market demand rather than strong institutional accumulation. A move back into positive territory would strengthen the bullish case and increase confidence that the current advance has sufficient underlying support to challenge the major resistance levels overhead.

Until then, traders should monitor the current breakout attempt with some caution, as weakening demand at resistance could still lead to another corrective move.

Source: CryptoPotato