Ethereum is currently attempting to recover after months of bear pressure, but key resistance levels and liquidation dynamics suggest that caution is still needed.
Technical Analysis
By Edris Dalakshi
Daily Charts
On the daily charts, ETH can bounce off the $1,900 support zone and is currently pushing towards the $2,200 resistance area. However, the assets are well below the 200-day moving average, at around $2,900, and continue to serve as a major hurdle.
The RSI is gradually climbing, but still not in the acquired territory. Unless your ETH holds above $2,400, the downtrend structure remains intact, with the $1,900 and $1,600 levels serving as important support for viewing.
4-hour chart
The four-hour chart shows Ethereum forming an ascending channel, which has recently pushed towards the upper limit of nearly $2,150. The rally from the $1,900 support zone was strong, but the assets are approaching the confluence of resistance levels, including the $2,200 zone marked with previous breakdowns.
RSI also enters over-acquisition regions, suggesting possible fatigue. Breakouts over $2,200 could bullish short-term bias, but rejection from current range could pull ETH back into the $1,900 zone.
Emotional analysis
By Edris Dalakshi
Long liquidation
The long liquidation chart has revealed sharp spikes in recent months, especially when it falls below the ETH $2,000. These mass clearings wiped out the leveraged length locations and contributed to increased volatility. The liquidation event is currently being cooled, but if leverage accumulates again, the market remains vulnerable to sharp movements.
Previous spikes have shown vulnerable feelings among speculators, and sharp rejection in the resistance zone can cause another cascade of long liquidation and strengthen bear pressure. Overall, price stability and sustainable recovery will result in stronger demand for reduced leverage and spot-driven demand.
