Ethereum is defending a critical support zone that technical analyst Ali Martinez says could determine the asset's next directional move. According to Martinez, ETH remains on track for a potential advance toward $2,060, provided buyers can keep the $1,850 support intact.

In a post on X, Martinez noted that Ethereum rebounded after testing the lower boundary of its ascending channel, preserving the short-term bullish structure while the $1,850 level remains unbroken.

The one-hour chart shared by Martinez shows ETH trading inside a rising parallel channel that has contained price action across multiple sessions. In technical analysis, rising channels are commonly used to track short-term momentum, with the lower boundary acting as support and the upper boundary serving as a potential resistance area. Buyers returned near the channel's support during the latest pullback, pushing the asset back above $1,880 and maintaining the existing trend.

That recovery kept Ethereum on course for a potential move toward the channel's upper boundary near $2,060. However, the asset must first overcome resistance around $1,980 before attempting a further advance.

Repeated Rebounds Reinforce Technical Outlook

The chart illustrates a sequence of higher highs and higher lows, reflecting an uptrend that has held despite several temporary declines. Each correction has found support within the channel, allowing buyers to regain momentum before price revisited higher levels.

The latest rebound occurred almost exactly at the lower trendline, reinforcing its role as the market's primary support. According to Martinez, holding above $1,850 keeps the ascending channel valid and preserves the possibility of another leg higher.

Additionally, the chart identifies approximately $1,980 as the next technical obstacle. Previous rallies have slowed around that region, making it an important level before Ethereum can challenge the upper channel boundary.

Ethereum $ETH has rebounded after testing the lower boundary of its channel. As long as this support at $1,850 continues to hold, I'm watching for a move back toward the upper boundary near $2,060. pic.twitter.com/3H29SDOprG — Ali Charts (@alicharts) July 24, 2026

Traders are monitoring whether buying pressure remains strong enough to push ETH through intermediate resistance. A successful breakout above $1,980 would strengthen the existing structure and increase the probability of reaching $2,060.

At the same time, repeated defenses of the lower trendline suggest buyers remain active whenever Ethereum approaches support. That pattern has helped maintain the channel throughout recent trading sessions.

Support Level Remains Decisive

While the technical structure currently favors buyers, the outlook depends on Ethereum maintaining support at $1,850, which marks both the lower boundary of the ascending channel and the latest higher-low formation within the current trend.

A sustained move below that support would invalidate the channel, weaken the short-term bullish structure, and expose Ethereum to additional selling pressure while reducing the likelihood of testing higher resistance levels. Because the setup is based on a one-hour chart, traders may continue watching whether ETH holds this level across subsequent candles rather than only during brief intraday moves.

Price action remains above the critical support zone, leaving the ascending channel intact. Traders are closely watching whether Ethereum can build enough momentum to reclaim $1,980 before extending its advance.

Ethereum continues to trade within a well-defined ascending channel, with $1,850 serving as the most important support level in the current structure. Holding above that zone preserves the bullish setup and keeps the path toward the channel's upper boundary near $2,060 open. A loss of that support, however, would invalidate the pattern and shift attention toward a broader corrective move.