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Ethereum continues to face pressure following its rejection from the $2,100 region, with the price now breaking below key support levels and testing lower demand zones.
Technical Analysis
By Edris Derakhshi
The Daily Chart
On the daily timeframe, $ETH remains firmly in a bearish structure, consistently printing lower highs and lower lows. The rejection from the $2,200 region and a subsequent breakdown below $1,900 has re-established bearish momentum, with the price now heading toward the next major demand zone around $1,600.
The 200-day moving average also trends slightly downward and sits far above price action, reinforcing long-term bearish bias. Moreover, the RSI is hovering near the oversold region, but without any bullish divergence or momentum shift, there’s little sign of a reversal. Unless $ETH reclaims $2,200 with strong conviction, the path of least resistance remains to the downside.
The 4-Hour Chart
The 4-hour chart confirms the breakdown of the rising channel that supported $ETH’s previous recovery attempts. The price failed to hold above the $1,900 level, which had acted as support during consolidation, and is now grinding lower, at nearly $1,800.
The clean rejection from $2,100 and the sharp selloff suggest that buyers lost momentum quickly, and sellers stepped in with force. The RSI is also currently in deep oversold territory, but without a strong bounce or bullish structure forming, there’s little evidence of dip-buying interest. For now, $ETH looks weak, and even if a short-term bounce occurs, it may be capped at $1,900 unless stronger buyers step in.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Funding Rates
Ethereum funding rates across all major exchanges have flipped to neutral or slightly negative, signaling a significant reduction in aggressive long positioning. This shift suggests that traders have become more defensive and less willing to chase upside, which typically aligns with a cooling-off period or continued downside drift.
While neutral funding may reduce the likelihood of a liquidation cascade, it also indicates that confidence is lacking for a strong bullish reversal. Sentiment remains cautious, and unless there is a resurgence of positive funding coupled with reclaiming key technical levels, the market is likely to stay under pressure.