ETH needs to recover this key level to resume a sustained rally

Ethereum is still trading within a broader bearish structure, but recent price action is showing signs of short-term stabilization above a key support zone. After the sharp sell-off seen in early February, ETH managed to hold on around $1,800, with buyers hoping for a move higher, although the market needs a stronger breakout to confirm a more meaningful recovery.

Ethereum Price Analysis: Daily Chart

On the daily chart, ETH remains below the 100-day and 200-day moving averages, maintaining a higher long-term downtrend. The asset is also trading within a descending channel, while the $2,400 and $2,800 areas act as major resistance barriers on any larger pullback.

At the moment, the market was from the blue demand zone in the range of $1,800 to $1,700, which is currently the most important support range. As long as ETH stays above this area, the structure may remain constructive in the short term, but a daily retracement of the $2,400 area is still needed to signal that broader bearish pressure is weakening.

4-hour ETH/USDT chart

On the 4-hour chart, ETH is gradually recovering from the late February lows and is now putting pressure once again on the $2,150 resistance level. The formation of a short-term uptrend from recent lows also points to an improvement in momentum, while the RSI has bounced back from its average line, supporting the case for a stronger recovery attempt.

However, the price has not yet broken down and the $2,150 level remains a key trigger for the near term. A clean move above it could open the way to the $2,400 support area, while another rejection is likely to keep ETH within its current range and take it back to the $1,800 support level.

Chain analysis

From an on-chain perspective, Ethereum’s exchange reserve continues its downward trend and is now down to around 16.1 million ETH, which is an outstanding long-term signal. A persistent decline suggests that more coins are leaving exchanges, which typically reflects less immediate selling pressure and a stronger preference for holdings rather than distributions.

It is said that the trend of the exchange stock is a support factor rather than a direct timing signal. In the short-term, ETH still needs price confirmation by breaking above the nearby resistance, but the continued decline in the exchange balance reinforces the idea that downward pressure may be more limited than before if demand starts to improve.