Ethereum is testing a series of increasingly important resistance levels after a sharp rebound from its local bottom. The next trading sessions may offer clearer signals on whether the recovery has enough momentum to continue, especially as spot-market resistance and derivatives liquidity levels begin to overlap with the current technical setup.

Ethereum Price Analysis: Daily Chart

On the daily chart, ETH remains above the descending trendline it previously broke, indicating that the medium-term structure has improved from the aggressive selloff recorded in June. Since that breakout, the market has formed a sequence of higher highs and higher lows while consolidating above the $1.76K to $1.82K support area.

The recovery, however, is now moving into a significant technical barrier. The $1.88K to $1.91K supply zone is the first resistance area, while the declining 100-day moving average is positioned just above it near the $1.95K region. Together, these levels create a resistance confluence that could limit the current rally before ETH attempts to test the broader long-term supply zone between roughly $2K and $2.15K.

These moving-average and supply-zone tests matter because they often show whether a rebound is attracting enough follow-through demand or merely retracing part of a prior selloff. A clean move through clustered resistance would point to stronger buyer participation, while repeated rejection in the same area would keep the recovery vulnerable to short-term profit-taking.

As long as ETH holds above the $1.76K to $1.82K support range, buyers retain the short-term advantage. A loss of that area would expose the next support zone around $1.55K to $1.64K and would weaken the current bullish structure.

ETH/USDT 4-Hour Chart

On the 4-hour timeframe, Ethereum has moved slightly below the ascending trendline that supported its recovery throughout July. The break has not yet been confirmed decisively, but it suggests that bullish momentum is starting to soften as price trades within the $1.88K to $1.91K supply zone.

The current structure indicates that buyers are losing some control after failing to extend the recent rally. If ETH continues to trade below the broken trendline, the move could develop into a deeper retracement toward the notable demand area around $1.76K to $1.79K, where buyers would be expected to appear.

On the other hand, a reclaim of the trendline followed by a breakout above the $1.88K to $1.91K resistance zone would invalidate the short-term weakness and increase the probability of another move toward the $1.95K to $2K region. Until one of these levels gives way decisively, the short-term chart remains focused on whether the recent trendline break becomes a confirmed reversal signal or a brief deviation inside a broader recovery.

Sentiment Analysis

The one-month Binance ETH liquidation heatmap shows a large concentration of liquidity around the $1.5K level. Although Ethereum is currently trading well above that area, the cluster remains an important reference point from a derivatives-market perspective.

Liquidation heatmaps are commonly used to identify areas where leveraged positions may be forced to close if price moves sharply enough. They do not guarantee that price will move toward a given level, but large clusters can become relevant if spot-market support fails and volatility increases.

If the current rally loses momentum and sellers regain control, a deeper correction toward the $1.5K liquidity pocket could draw price lower as leveraged long positions are unwound. Such a move would likely align with a break below the key technical support levels shown on the chart.

For now, the broader structure remains constructive, but the presence of this sizable liquidity cluster indicates that downside risk has not fully disappeared despite Ethereum’s recent recovery.