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Where’s ETH Heading Next as Bullish Momentum Cools?

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Summarize with AI



Summarize with AI

Ethereum is still stuck in a broader corrective phase, but the structure is no longer aggressively bearish. The asset is holding above key higher-timeframe demand while volatility has compressed. This is typically where the market decides between a continuation lower or a larger corrective push higher. Momentum remains mixed, and ETH is still lagging relative to BTC, but downside follow-through has clearly weakened.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, ETH remains below the major 100-day and 200-day moving averages and is capped by a significant supply zone around the $3.5k region. This zone has repeatedly rejected the price and aligns with the prior distribution.

That said, the selloff into the lower $2.6k–$2.7k area was aggressively defended. The asset respected that demand zone cleanly and has since transitioned into a range-bound structure in the Fibonacci golden zone. Yet, as the key moving averages are still overhead and acting as dynamic resistance, the daily bias remains neutral to slightly bearish until they are reclaimed.

As long as ETH holds above the $2.6k-$2.7k demand area, current price action looks more like consolidation after distribution, not panic selling. A daily close back above the $3.5k zone and the 200-day MA would be the first real signal of strength.

ETH/USDT 4-Hour Chart

The 4H chart shows a clearer structure. ETH is trading inside a symmetrical triangle, with higher lows and lower highs forming since late November. The price recently tapped the triangle’s higher trendline and pulled back modestly, which is healthy rather than concerning.

Short-term resistance sits around the prior highs at $3.3k, which is also near the upper boundary of the channel. Support is also well-defined along the triangle’s lower boundary and the broader demand area below at $2.6k.

At the moment, the RSI is rising once again on the 4-hour timeframe, which points to bullish momentum being dominant on lower timeframes. If ETH holds this structure, the next attempt should target the upper boundary of the triangle again. On the other hand, a breakdown below triangle support would invalidate the short-term bullish structure and shift focus back to the $2.6k demand zone.

Onchain Analysis

Ethereum exchange reserves continue to trend lower, which is a constructive long-term signal. Despite the price weakness, coins are still leaving exchanges, suggesting reduced sell pressure and ongoing accumulation behavior rather than distribution.

Historically, sustained drops in exchange reserves during consolidation phases often precede stronger directional moves, once macro or market sentiment aligns. This doesn’t mean immediate upside, but it does reduce the probability of a sharp capitulation move from here. Therefore, on-chain data support the idea that ETH is being absorbed rather than dumped at current levels.

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Source: https://cryptopotato.com/ethereum-price-analysis-wheres-eth-heading-next-as-bullish-momentum-cools/

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