Ethereum Price Analysis: ETH Still in Danger Below Critical Resistance Levels

Ethereum has staged a notable rebound from the $3.4K capitulation low, reclaiming ground above the psychological $4K ￰0￱ the move marks a strong recovery, ETH remains capped beneath key resistance zones, signalling that this rebound is an early stage of structural repair rather than a confirmed bullish ￰1￱ Analysis By Shayan The Daily Chart On the daily timeframe, Ethereum has recovered from the $3.4K–$3.5K demand zone, propelling the price back above both the 100-day moving average ($4K) and the channel’s previously broken lower ￰2￱ surge has been supported by a bullish RSI divergence, indicating waning downside momentum and suggesting that sellers are losing control after the recent ￰3￱ price action has since reclaimed the channel’s lower boundary, now acting as dynamic support, and is consolidating above this reclaimed level.

However, the structure remains ￰4￱ acceptance above $4.3K is essential to reestablish a bullish bias and open the path toward the $4.6K–$4.7K supply zone. Conversely, a drop back below $4K could invalidate the recovery and expose the $3.6K–$3.4K liquidity pool for another ￰5￱ 4-Hour Chart The 4-hour structure reveals Ethereum forming a rising wedge pattern following its sharp V-shaped rebound from the $3.4K ￰6￱ asset is now trading near the 0.618 Fibonacci retracement zone around $4.25K, which overlaps with the former breakdown area ($4.2K–$4.3K), making this a key decision point for short-term direction. A breakout above $4.3K would invalidate the wedge structure and confirm bullish continuation toward $4.45K–$4.7K, aligning with the daily supply ￰7￱ the other hand, a breakdown below the wedge could trigger renewed weakness, sending Ethereum back toward the $3.8K–$3.4K demand ￰8￱ remains cautiously constructive, but with volatility compressed inside the wedge, a directional expansion is likely ￰9￱ Analysis By Shayan On-chain data from Binance, the largest Ethereum trading platform, shows a sharp decline in ETH’s exchange supply ratio, which has fallen to 0.33, approaching its lowest levels since ￰10￱ drop follows a brief uptick in exchange balances during the period when Ethereum was stabilizing around $4K.

The falling exchange supply ratio indicates that holders are withdrawing ETH from exchanges into self-custody or cold wallets, a behavior widely viewed as ￰11￱ coins held on exchanges mean lower immediate selling pressure and a tightening of available liquidity, setting conditions for a potential supply squeeze if demand ￰12￱ trend suggests that Ethereum’s recovery is not merely technical, but underpinned by genuine on-chain ￰13￱ shift toward holding behavior by both retail and institutional participants reinforces the idea of a structural demand base forming beneath current price ￰14￱ this withdrawal trend persists and technical confirmation occurs with a decisive breakout above $4.3K, Ethereum could be poised for a sustained mid-term rally, supported by shrinking exchange liquidity and strengthening market fundamentals.