Ethereum has recovered from its June lows and is now testing a critical resistance zone around $1,800-$1,850, where a descending trendline and horizontal supply converge. A decisive breakout above this area could open the path toward $2,000-$2,100, while failure risks a retest of support near $1,450-$1,550.
Daily Chart: Descending Structure Intact
On the daily timeframe, ETH remains within a broader downtrend that began earlier this year. The asset bounced strongly from the demand zone between $1,450 and $1,550 and is now challenging the key resistance region at $1,800-$1,850. This zone is significant because it coincides with the descending trendline that has capped price action since May and previously acted as support before the June breakdown.
Despite the recent strength, ETH still trades below its 100-day and 200-day moving averages, both of which are sloping downward. The 100-day MA sits near $2,000-$2,100, while the 200-day MA is around $2,200, reinforcing the broader bearish outlook. As long as the price remains under the trendline and the $1,800-$1,850 resistance, the current move can be viewed as a recovery rally within a larger downtrend.
4-Hour Chart: Ascending Channel Nears Top
The 4-hour chart shows a clear ascending channel that has developed since the late-June low. Price has respected the rising boundaries while forming higher highs and higher lows, indicating improving short-term momentum. The market reclaimed the $1,620-$1,640 demand zone and established another support area around $1,720-$1,740, which has attracted buyers during pullbacks.
However, the rally is now approaching the upper channel boundary and the major resistance band at $1,830-$1,850. This creates a natural area where profit-taking and seller activity could emerge. Structurally, ETH remains constructive above the $1,720-$1,740 support. Losing that level would be the first sign that bullish momentum is fading and could expose the lower channel boundary and the broader support zone around $1,550.
Liquidity Heatmap Points to $2K Target
The Binance ETH/USDT liquidation heatmap reveals that the most significant concentration of short-side liquidity sits above the current price, particularly within the $1,950-$2,100 region. This cluster aligns closely with the daily resistance zone, the 100-day moving average, and the broader supply area visible on the higher timeframe. Meanwhile, substantial liquidity pools remain below the market around $1,450-$1,550, corresponding with the major daily demand zone.
The alignment between the liquidation map and technical structure suggests that the market may first be drawn toward the overhead liquidity cluster. A move into the $2,000-$2,100 area would sweep a large concentration of short liquidations while simultaneously testing one of the most important resistance zones on the chart. The reaction at that region will likely determine the next major directional move. If buyers reclaim $2,000-$2,100 and establish acceptance above it, the recovery could evolve into a broader bullish trend reversal. However, if the liquidity sweep is followed by strong selling pressure and rejection, ETH could enter another notable decline, potentially targeting the large liquidity pools beneath the market around $1,450-$1,550.