Ethereum Price Analysis: ETH Shows Strong Signs of Rebound, but Approaches Major Hurdles

Ethereum has recently shown a notable shift in short-term momentum, attracting renewed attention as it approaches a key technical area. While the broader structure remains corrective, recent price behavior suggests buyers are becoming more active around key technical levels.

Ethereum Price Analysis: The Daily Chart

On the daily time frame, ETH has experienced a clear upward move from the $2.7K demand zone, pushing the price towards a substantial resistance zone. This resistance is defined by the confluence of the $3.4K 100-day moving average and the highlighted yellow supply area. Historically, this region has acted as a strong barrier, and the current approach to this zone increases the likelihood of a response or consolidation.

Despite the recent bullish momentum, the asset is still trading within a wider descending channel, indicating that a move above this resistance is needed to shift the bias on the higher time frame. Until then, this area should be treated as a critical decision area where momentum may wane or sellers may reenter the market.

ETH/USDT 4-hour chart

On the 4-hour chart, the structure gives a clearer picture of the recent recovery. The price found solid support at the lower limit of the wedge at $2.7K, confirming strong demand at that level. From there, Ethereum steadily rose to the upper limit of the $3.3K wedge and has now broken slightly above it.

This breakout reflects improving short-term momentum, but does not yet confirm a complete trend reversal. The blue resistance box above, bounded by the $3.3K-$3,450 thresholds, remains the main obstacle to continuation as the price has previously reacted sharply from this zone. A clean acceptance above this area would be necessary to confirm ongoing bullish continuation, while rejection could lead to another pullback towards wedge support or the mid-levels.

Sentiment analysis

From an on-chain perspective, the Ethereum Spot Average Order Size chart shows a significant change in behavior. The recent appearance and clustering of green spots indicate increased participation from whale-sized spot buyers during the current price recovery. This indicates that larger participants are returning to business after a period dominated by retail-sized orders.

Such behavior often corresponds to accumulation phases rather than distribution, especially when it occurs near structural support zones. While this does not guarantee an immediate continuation of the uptrend, it does reinforce the idea that downside risk can increasingly be absorbed by stronger hands.

Overall, Ethereum is currently in a technically sensitive area where short-term momentum has improved, but longer-term resistance still dominates. The price reaction around the $3.4K-$3.5K region will be critical in determining whether the recent recovery evolves into a broader trend shift or remains a corrective rebound within the existing structure.