Ethereum has paused after its recent recovery, with the price action compressing beneath a key resistance area while still holding above higher lows. The current structure suggests that the market is approaching an inflection point where the next breakout or breakdown could determine the short-term direction.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, ETH remains below the long-term resistance zone between $2K and $2.15K, where the 100-day moving average continues to reinforce selling pressure. Although buyers managed to recover strongly from the June lows, the latest rejection near the 100-day MA highlights that the broader bearish structure has not yet been invalidated.

The recent pullback has brought the asset back into the $1.88K to $1.91K support zone, which now serves as the first line of defense for buyers. Holding above this area could allow another attempt toward the $2K to $2.15K resistance region, while losing it would expose the next demand zone around $1.75K to $1.8K. A deeper correction could eventually extend toward the stronger support around $1.56K to $1.65K.

ETH/USDT 4-Hour Chart

The 4-hour chart shows Ethereum consolidating inside a narrowing range between the white ascending trendline, acting as dynamic support, and the yellow descending trendline overhead. This compression reflects increasing indecision as buyers and sellers battle near the $1.88K to $1.91K supply zone.

As long as the price remains confined between these two trendlines, short-term volatility may stay limited. However, a breakdown below the white ascending trendline would invalidate the series of higher lows and likely trigger a decline toward the $1.75K to $1.8K demand zone. If that support also fails, the next downside target would be the broader demand area around $1.56K to $1.65K.

Conversely, a decisive breakout above the yellow trendline and the nearby supply zone would improve the short-term outlook and increase the probability of another move toward the major daily resistance overhead.

Sentiment Analysis

The Spot Average Order Size metric shows that large spot orders from whale-sized participants have become increasingly active during Ethereum’s recent recovery. Given that ETH is still trading relatively close to its yearly lows, this behavior is more consistent with accumulation than aggressive distribution.

Historically, increased participation from large spot buyers near depressed price levels has often reflected long-term positioning rather than short-term speculation. While this does not guarantee an immediate trend reversal, it suggests that larger market participants are gradually accumulating exposure as Ethereum trades well below its previous cycle highs.

Source: CryptoPotato