Ethereum has continued its recovery from the June lows and is now approaching a major technical inflection point. The recent rally has improved short-term sentiment, but the asset is still trading below a confluence of long-term resistance levels.
Interestingly, the liquidation landscape closely aligns with these technical barriers. This suggests that ETH could first target overhead liquidity before the market decides whether a larger trend reversal is underway or if another corrective decline remains to come.
Daily Chart Resistance and Moving Averages
On the daily time frame, ETH remains in a broader descending structure in place since the start of the year. It has recovered strongly from the main demand zone around $1.45,000 to $1.55,000 and is currently testing the key resistance region near $1.80,000 to $1.85,000.
This area is particularly important because it coincides with the descending trendline that has capped price action since May. The level also represents major horizontal resistance that previously served as support before the June breakout.
Despite its recent strength, ETH remains below the 100-day and 200-day moving averages, both of which continue to decline. The 100-day MA is positioned around the $2,000-$2.1,000 resistance zone, while the 200-day MA remains considerably higher near $2.2,000, reinforcing the broader bear market structure.
As long as ETH remains below the descending trendline and the $1.80k-$1.85k resistance zone, the current move can still be seen as a recovery rally within a broader downtrend. A decisive break above this zone would shift the focus towards the next major resistance between $2,000 and $2.1,000.
4-hour chart shows ascending channel
The 4-hour chart highlights a clear ascending structure that has developed since the late June low. Price respected the boundaries of the ascending channel while forming higher highs and higher lows, reflecting improving short-term momentum.
The market has already reclaimed the demand zone of $1.62K to $1.64K and subsequently established another support zone around $1.72K to $1.74K. These areas have repeatedly attracted buyers during pullbacks and continue to define the short-term bullish structure.
However, the rally is now approaching the upper boundary of the channel and the main resistance band around $1.83k to $1.85k. This creates a natural space where profit-taking and sales activities could emerge.
From a structural perspective, ETH remains constructive above the $1.72K-$1.74K support region. Losing this level would be the first sign of a slowdown in bullish momentum. This could then expose the lower boundary of the channel and the broader support zone around $1.55k.
Liquidation Heatmap and Sentiment Alignment
The Binance ETH/USDT liquidation heatmap provides an important clue regarding the likely next move. The largest concentration of short-term liquidity is above the current market price, particularly in the $1.95k to $2.1k range. This cluster aligns remarkably well with the daily chart’s resistance zone, the 100-day moving average, and the broader supply zone visible on the higher time frame.
Meanwhile, significant liquidity pools remain below market, around the $1.45k-$1.55k region. This closely matches the main daily demand area that has supported ETH throughout the recent rally.
The alignment between the liquidation chart and the technical structure suggests that the market may be attracted to the overhead liquidity cluster first. A move into the $2,000 to $2,100 area would effectively wipe out a large concentration of short liquidations while simultaneously testing one of the most important resistance areas on the chart.
The reaction in this region will likely determine the next major directional move. If buyers are able to reclaim the $2,000-$2.1,000 resistance zone and establish acceptance above it, the recovery could evolve into a broader bullish trend reversal. However, if the increase in liquidity is followed by strong selling pressure and a rejection of resistance, ETH could see another notable decline. This could potentially target the large liquidity pools below the market around the $1.45k to $1.55k support zone.
