Ethereum (ETH) is holding a key higher-timeframe demand zone while volatility continues to narrow. The market is still in a corrective phase, but the structure no longer shows strong bearish pressure. This narrowing range now places ETH at a point where a breakout or deeper pullback may develop soon.
On the daily chart, the asset is below the 100-day/200-day moving averages. The two indicators continue to play the role of resistance above the price. The supply zone of $3,500 also capped ETH, and it has made several attempts to move past it. This area coincides with the previous distribution and still restricts the upward movement.
Sellers have stalled at the level of the $2,600 to $2,700 support area despite the obstacles. This is where buyers demonstrated strong buying power during the previous sell-off. ETH honored this tier spotlessly and slipped into a more range-bound, more constricted framework. The price has now traded in the Fibonacci golden zone, with the key moving averages above it.
Source: TradingView
Ethereum Tests Major Support And Resistance
According to the analysts, the general bias in the daily moves remains neutral to modestly bearish until ETH retakes those moving averages. The first clear indication of renewed strength would be a daily close above the level of $3.5k and the 200-day MA. Until that point, price action is perceived as a controlled consolidation and not a panic-driven fall.
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Analyst Crypto Patel highlighted that ETH surged to $3,383 following a rebound on the elevated timeframes supported in the $2,900 range. This action generated a gain of about 15% of the demand zone entry. According to Patel, the possession of the $3,000 to $3,050 area maintains the following targets at $5,000, $8,000, and $12,000. Patel termed the structure as a breakout and a retest.
Source: X
Moreover, another analyst, More Crypto Online, mentioned that ETH has reached a micro support area. The recent pullback has built up to a three-wave downward swing. The analyst further indicated that wave (5) may continue rising above the level of $3,213. This condition maintains the short-term structure.
Source: X
Open Interest And Trading Volume Surge
According to CoinGlass data, the trading volume has increased by 55.44% to $86.94 billion. Open Interest has risen by 5.39% to $41.42 billion. The OI-Weighted Funding Rate is 0.0080%, and that shows a balanced derivatives environment. These numbers are an indicator that ETH is gaining interest in its consolidation stage.
Source: CoinGlass
Ethereum’s larger structure is still in the corrective phase, but the downside pressure has lessened. The level of support still stands firm, and the level of resistance is the primary obstacle to any lasting progress. Analysts are also monitoring whether Ethereum can climb over the major moving averages or be pulled back to its defended demand areas.
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