Ethereum has seen a notable rebound after defending from recent lows, as buyers gradually rebuild momentum. While the higher time frames remain constricted below key resistance, the structure of the lower time frame has improved, and on-chain activity appears to be stabilizing after months of cooling grid engagement.
Ethereum price analysis: daily chart
On the daily chart, it is clear that ETH continues to trade within a broader bearish structure despite its recent rebound. The asset remains within the bearish channel that has led the market lower for several months, while both the 100-day and 200-day moving averages continue to slope downward above the current price, reinforcing the fact that the prevailing trend is bearish.
After a sharp decline towards the $1.5K demand zone, buyers intervened aggressively, leading to a comfortable rally towards the key resistance level around $1.8K. This area is of particular importance because it coincides with the upper trend line of the descending channel, making it an area of great resistance.
The RSI has rebounded above its midline after previously entering oversold territory, indicating improved upward momentum. However, the index has not yet reached overbought levels, leaving room for further upside if resistance is broken.
A decisive daily close above the $1.8K resistance could expose the next supply zone around $2.0K to $2.2K, where previous support has turned into resistance. Conversely, rejection from the current area would likely shift attention back towards the $1.5K support, with missing this level raising the possibility of another move towards much lower targets.
ETH/USDT 4-hour chart
The four-hour frame presents a more constructive picture. Ethereum established a clear higher-low after breaking out of the recent consolidation range above $1.5K, suggesting that buyers have regained control in the short-term.
The higher high bottom around the $1.75K area has been confirmed so far, indicating improving market structure. The price is now approaching the $1.8K to $1.85K resistance zone, which has limited previous recovery attempts in recent weeks.
Momentum has also strengthened, with the RSI rising back above the neutral 50 level after cooling from previous highs. This indicates that buying pressure remains, although overhead resistance may lead to a temporary consolidation.
As long as ETH continues to hold above the $1.7K high-low zone, the short-term bullish structure remains valid. A successful break above $1.85K would strengthen the case for an extension towards the $2.2K supply zone to $2.2K. However, failure to sustain a higher low would invalidate the recent recovery structure and shift focus back towards the $1.64K demand block, and even the critical $1.5K retracement area.
On-chain analysis
Ethereum’s active addresses metric continues a downward trend after peaking earlier in the year. The 30-day exponential moving average of active addresses has been steadily decreasing, indicating that network engagement has slowed significantly compared to previous highs.
Despite this long-term downward trend in activity, the pace of decline appears to be moderating, suggesting that the network may be entering a stabilization phase rather than experiencing a continued decline. Historically, periods in which active addresses stabilize after prolonged weakness have often coincided with price consolidation before the next major directional move.
Meanwhile, ETH has managed to recover from recent lows while active address growth remains weak. This divergence suggests that the current recovery has been driven more by improving market and position sentiment than by a recovery in broad-based on-chain demand.
For the recovery to develop into a more sustainable uptrend, a gradual increase in active addresses combined with continued price appreciation would provide stronger confirmation of the return of capital and user activity to the Ethereum network. Until then, the improving technical structure should be viewed alongside muted on-chain participation, indicating cautious optimism rather than confirming a complete trend reversal.
this post Ethereum Price Analysis: ETH faces a critical test after the recent rebound appeared first on CryptoPotato.
