Ethereum Price Analysis: Essential Support or Value Trap? Decrypting ETH’s next big step

Ethereum is still in a broader correction phase and is trading below the major moving averages and within a well-defined descending structure. While short-term stabilization is visible near support, the longer-term trend still favors sellers unless major resistance levels are reclaimed with strong momentum.

Ethereum Price Analysis: The Daily Chart

On the daily time frame, ETH continues to respect a descending channel, consistently forming lower highs below both the 100-day and 200-day moving averages. The recent collapse has accelerated the price towards the $1,750-$1,800 demand zone, where buyers have stepped in to slow the decline, but the structure remains generally bearish.

The region between $2,300 and $2,400 now acts as a key resistance cluster, in line with previous breakdown levels and just below the declining 100-day moving average. Unless ETH can reclaim that zone and break above the upper channel limit, rallies will likely be corrective, with the risk of another leg towards lower channel support still present.

ETH/USDT 4-hour chart

In the 4H period, the asset is compressed within a symmetrical triangle formed by recent lower highs and higher lows, above the horizontal support zone at $1,800. This short-term symmetric contraction reflects indecision rather than a confirmed reversal as lower highs continue to be printed.

A break above the $2,000-$2,100 highs would be the first signal of a near-term momentum shift and could open a move towards the $2,300-$2,400 resistance band. Conversely, the loss of the $1,800 base would negate the consolidation thesis and likely lead to renewed downward pressure towards deeper support levels.

Analysis in the chain

Active address data shows a sharp spike in network activity recently, with the 30-day EMA of active addresses rising to a multi-month high. Historically, similar expansions in activity have coincided with periods of increased volatility and often precede major changes in direction.

However, despite the spike in participation, the asset has yet to confirm a bullish reversal. This divergence suggests that while involvement is increasing, capital flows are not decisively pushing prices higher and could indicate panic selling at lows by weaker hands. If the increased activity continues as the price stabilizes, this could provide a constructive base. However, confirmation would require a clear break above key technical resistance levels.