Ethereum Price Analysis: Descending Channel Dominates as ETH Tests Demand Zone
Ethereum stays in a cyclical downswing after the current capitulation leg that drove the value from the mid-$2,000s into the $1,800 demand area. The construction throughout larger timeframes continues to be dominated by a well-defined descending channel, with decrease highs since late 2025 and momentum readings in oversold territory now trying to stabilize.
Current circumstances, due to this fact, replicate a market within the strategy of digesting a pointy repricing, the place the subsequent impulse will seemingly be outlined by how the value reacts to the closest resistance band round $2,700 and the reclaimed assist zone close to $1,800–$2,000.
Ethereum Price Analysis: The Daily Chart
The every day chart exhibits Ethereum trending inside a broad downward channel, with the most recent sell-off driving the asset into the decrease boundary and the horizontal demand area between roughly $1,800 and $1,700. This zone has produced an preliminary response, however the sequence of decrease highs and decrease lows stays intact, and the bearish truthful worth hole round $2,300–$2,400 now acts as the primary short-term resistance cluster.
Daily RSI has additionally bounced from deeply oversold readings however nonetheless resides in a bearish regime, indicating that any restoration for now’s finest labeled as a corrective rebound inside a dominant downtrend. Yet, a sustained transfer again above $2,400–$2,500 and the channel midline can be required to argue for a extra sturdy development change.
ETH/USDT 4-Hour Chart
On the 4-hour timeframe, the market shows a short-term basing try after the steep decline. The value carved out a descending leg that terminated close to the $1,800 demand zone whereas the 4-hour RSI shaped a transparent bullish divergence, signalling vendor exhaustion and prompting the present consolidation above the assist zone at $1,800 and under the resistance degree at $2,100.
This vary now defines the tactical battlefield: holding above $1,800 would hold the creating restoration construction legitimate and open the door for a retest of the $2,200 short-term resistance degree, whereas a decisive breakdown under $1,800 would point out that the reduction section has failed and expose the decrease every day helps nearer to $1,600.
On-Chain Analysis
The Exchange Supply Ratio for Ethereum has continued to development decrease and at the moment sits close to the bottom ranges of the displayed collection, round 0.135, implying that an more and more smaller fraction of the overall ETH provide is held on centralized exchanges. This persistent decline, even as costs have offered off towards the $2,000 space, means that a good portion of the availability has migrated to self-custody or staking and is much less instantly accessible on the market, decreasing structural spot sell-side liquidity.
In the quick time period, this configuration can amplify volatility, with sharp downtrends pushed by derivatives and compelled promoting going through comparatively skinny spot order books. But from a medium-term perspective, a depressed change provide ratio mixed with already realized draw back usually characterizes late-stage phases of a corrective cycle, the place further marginal provide turns into progressively more durable to supply if demand begins to get well.
The put up Ethereum Price Analysis: Descending Channel Dominates as ETH Tests Demand Zone appeared first on CryptoPotato.
