Ethereum reduces the risk of dropping momentum further below $2,000

Ethereum is trying to extend its recovery from the February lows, but the broader structure still reflects a market in recovery mode rather than a confirmed trend. Future sessions should clarify whether this bounce can turn into a sustained move or remain within a larger corrective downtrend.

Ethereum Price Analysis: Daily Chart

On the daily chart, ETH remains within a descending channel and continues to trade below the major moving average, with both the 100-day MA and 200-day MA acting as upward pressure. This bullish bias remains cautious as rallies into these dynamic resistance areas often attract bids unless price retraces them decisively.

From the point of view of the level, the first meaningful resistance is located in the range of $2,350 to $2,450, which is consistent with the previous structure and the visible supply zone. A fresh daily rebound and a hold above that zone will improve the outlook and bring the $2,800 to $3,000 zone back into play. On the downside, the $1,800 area remains a key demand zone that previously absorbed heavy selling. Losing it every day exposes the next lower band of around $1,500.

4-hour ETH/USDT chart

The 4-hour chart shows that ETH is stabilizing after a sharp sell-off, but price action is still limited by its nearby resistance, with $2,150 seen as an immediate reversal. Recent attempts at this level have been rejected, suggesting that sellers remain active spenders and that buyers need stronger follow-through to change the short-term structure.

If ETH can recover the $2,150 level and then hold above it, the future upside path is likely to first target the $2,300-2,400 area as a resistance zone from the daily chart.

However, if the rejection continues, or the price does not recover after the fake breakout, the focus will be on the $1,800 area as short-term support and then back to the $1,600 to $1,500 demand area. A break below that demand zone would seriously weaken the consolidation setup and reduce the likelihood of a deeper continuation.

Sentiment analysis

Funding rates turned slightly positive again, indicating that leverage is slowly being restored after the capitulation phase. It’s a constructive sign if it’s accompanied by steady price increases, as a balanced funding environment often supports healthier continuations rather than fragile, excessive pumps.

That said, the market is still vulnerable to key resistance. If ETH breaks below $2,150 while funding remains positive, the risk of long positions becoming crowded increases, which could lead to sharp declines and forced risk-off events. The more likely scenario is a sustained upward push with funding controls, rather than an upward trend, as this suggests that demand is driving the move rather than being chased by leverage.