Ethereum Price Analysis: ETH Defends Key Support as Bullish Momentum Cools

Ethereum is holding steady within a pivotal technical zone following its sharp bounce off June’s lows. While the broader recovery structure remains intact, fresh price action signals that bullish momentum is losing steam, with buyers and sellers now locked in a tug-of-war just beneath major overhead resistance.

Daily Chart: ETH Still Capped Below Major Moving Averages

On the daily timeframe, Ethereum continues to trade below both the 100-day and 200-day moving averages, a sign that the broader trend remains cautious despite the rebound off the June bottom.

The latest rally attempt ran out of steam just under the 100-day moving average near the $1.95K level, where sellers stepped back in and drove price back down into the $1.88K–$1.91K supply zone.

Key levels to watch on the daily chart:

• Immediate resistance: $1.88K–$1.91K — currently capping upside attempts
• Bullish trigger zone: A confirmed breakout above this supply zone would improve the medium-term outlook and open the door towards the $2.02K–$2.15K resistance band, where the 100-day and 200-day moving averages converge
• First support: $1.75K–$1.79K demand zone — the market’s near-term line of defence
• Deeper support: $1.56K–$1.64K — a major demand region that could come into play if the $1.75K–$1.79K zone fails to hold

Until Ethereum can clear the $1.88K–$1.91K ceiling, the asset remains exposed to another rejection, keeping the near-term bias tilted towards caution.

ETH/USDT 4-Hour Chart: A Tightening Compression Pattern

Zooming into the 4-hour chart, Ethereum is trading inside a compression pattern, squeezed between a rising white trendline (support) and a descending yellow trendline (resistance). This narrowing range points to growing market indecision, as neither side has managed to force a decisive breakout.

Currently, ETH is consolidating around the $1.88K–$1.91K resistance zone while still respecting its ascending support trendline — a structure that has kept the sequence of higher lows alive since the June recovery began.

Two scenarios stand out:

• Bullish case: A breakout above both the $1.88K–$1.91K resistance zone and the descending yellow trendline would likely reinforce bullish momentum, setting up another test of recent highs.
• Bearish case: A breakdown below the white ascending trendline would invalidate the pattern of higher lows and could accelerate a slide towards the $1.75K–$1.79K demand zone, where buyers are expected to step in and defend the broader recovery structure.

Sentiment Check: Liquidity Pools Above and Below Current Price

A look at the two-week Binance liquidation heatmap reveals two key zones of concentrated liquidity flanking the current price:

• Upside liquidity target: A notable cluster has built up around the $2K level, making it the primary magnet for price if buyers regain control.
• Downside liquidity cluster: A significant pocket of liquidations has also formed around the $1.82K region, just beneath current trading levels.

With Ethereum currently sandwiched between these two liquidity pools, the market may continue to see choppy, range-bound trading until one side gains enough momentum to force a decisive move. A sweep of either the $2K or $1.82K liquidity cluster could trigger a spike in volatility as leveraged positions get liquidated in the process.

Bottom Line

Ethereum’s broader recovery from the June lows remains structurally intact, but the fading momentum beneath the $1.88K–$1.91K resistance zone suggests the market needs a fresh catalyst to reclaim control.

A clean breakout above resistance would shift the medium-term outlook bullish and open the path towards the $2.02K–$2.15K zone and the $2K liquidity target. Conversely, a break of the ascending trendline and the $1.75K–$1.79K support would expose ETH to a deeper pullback towards the $1.56K–$1.64K demand region. For now, traders should watch the $1.88K–$1.91K and $1.75K–$1.79K levels closely, as they are likely to define Ethereum’s next directional move.