The breakout briefly improved sentiment and opened the door to a potential recovery towards $2,400. However, follow-up purchases have remained modest. The price has since returned to the $2,080-$2,120 range, indicating that the market is still testing whether this level can actually turn from resistance to support rather than immediately launching higher.
From a technical perspective, this area now functions as a confirmation zone: continued closes above it would signal acceptance, while repeated failures would imply another false breakout.
Breakout above $2,100 and immediate selling
On the daily time frame, the clearing of $2,100 ended a streak of lower highs that started after Ethereum reached nearly $3,500. Volume increased during the breakout, but the move lacked the steady spot market demand typically seen at the start of stronger trend reversals.
ETH has broken above $2,100, with a sustained daily close potentially opening the way to $2,400, while failure to hold this level could lead to a retest of recent lows. Source: @TedPillows via X
Derivatives positioning and liquidation data indicate that some of the increase was driven by short covering rather than new capital entering the market. Demonstrations that are mainly stimulated by liquidations often last quickly, but are difficult to sustain momentumwhich helps explain the current hesitation near resistance.
The price action since then shows repeated rejections between $2,110 and $2,120, with wider range emerging again around $2,269-$2,350. A decisive acceptance above these limits would be necessary to find a cleaner path to $2,400 again.
Ethereum Technical Analysis: Momentum Remains Defensive
Recent technical analysis of Ethereum shows mixed conditions rather than a clear trend shift.
At higher futures, ETH has broken out of a rising wedge and set a lower high – usually a sign of distribution or consolidation rather than expansion.
ETH has exited its uptrend and entered a seller-dominated structure with resistance between $1,950 and $2,120 and an overhead supply at higher levels, indicating a bearish continuation unless the price reclaims $2,588 on a weekly close. Source: cryptodailyuk on TradingView
Momentum indicators reinforce that caution:
The RSI remains below 50, which historically marks the line between bullish and bearish momentum. In previous ETH recoveries, sustained rallies usually only started after RSI reclaimed the 50-55 range.
Stochastic RSI rebounds are stagnant in the mid-range, indicating buyers are out of gear.
MACD has produced another bearish crossover, indicating that upside is waning.
Taken together, these signals imply that momentum has not yet transitioned to a new uptrend. Declines remain sharp and impulsive, while rebounds appear slower and corrective – a pattern often associated with seller control.
Still, holding ETH above the $2,000 psychological bottom prevents a broader collapse and keeps consolidation intact for now.
Key price levels traders look at
Based on the recent structure and historical reaction zones, these levels will likely determine Ethereum’s near-term price behavior:
Resistance
$2,110 – $2,120 (recent breakout zone under active testing)
$2,269–$2,350 (high volume offering/order block)
$2,588 and $3,104 (previous acceptance zones on weekly charts)
Support
Psychological level of $2,000
Asking range of $1,700 – $1,750
Response area of $1,800 per week
A weekly close above $2,588 would be the first longer-term confirmation of recovery strength. Without that, the rallies could continue to behave as corrective upswings within a broader range.
Structural background: network development and institutional participation
Beyond the short-term charts, longer-term sentiment around Ethereum continues to be driven by network scalability efforts and institutional exposure.
After an unexpectedly sharp correction, the outlook remains cautiously optimistic, with modest upside potential and an initial target of a 14% move towards $2,400, although further declines remain possible. Source: crazy whale on TradingView
Ethereum developers have talked about increasing Layer-1 throughput over time through future upgrades aimed at increasing gas limits and improving efficiency. While higher capacity could reduce transaction costs and improve usability, timelines and final specifications remain subject to testing and governance decisions rather than firm guarantees.
Institutional access through Ethereum ETFs has also led to more stable, but variable capital flows. The weekly inflow and outflow fluctuates, but the presence of regulated products in general supports longer-term adoption by providing exposure to traditional investors without immediate custody risks.
Together these factors provide constructive background support, but they do not transcend the technical structure in the short term.
Final thoughts
As of the last session, ETH is trading near $2,100 and is essentially at the crossroads between recovery and rejection. The market is not in a confirmed uptrend, but it is not collapsing either.
Ethereum was trading at around $2,093,468, up 0.47% in the past 24 hours at the time of writing. Source: Brave New Coin
In practical terms, Ethereum is stabilizing after volatility as participants wait for clearer direction. By holding above USD 2,100, a gradual move towards USD 2,400 is technically possible. If this were to disappear, the focus would likely shift back to lower demand zones.
For now, the evidence points to consolidation with cautious upside potential, rather than a decisive breakout.
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