Ethereum rose with the broader crypto market this week, but its rebound is now facing a technical test who can decide whether the movement has real force or only the reflection of The momentum of Bitcoin.
Recent technical outlook indicates a deficit on ETH’s daily candlestick chart, as the price continues to languish below the upper end of its ascending channel despite repeated attempts to extend the rally.
Ethereum Rally Shows Deficit
Technical analysis of The Ethereum daily candlestick time chart shows that Ethereum has been trading inside an ascending channel since February 2026. This is a structure that, in theory, should allow bulls to gradually push the price towards its upper limit.
The structure has produced a sequence of higher lows, which is usually a good sign. However, the problem is that ETH has not matched this strength in the upper part of the trend, at least in May.
According to a crypto analyst named Ardi on social media platform This leaves the price around 6% below the top of the channel, creating a deficit.
Daily structure is not entirely optimistic either. Although ETH has regained its short- and medium-term moving averages, the 200-day EMA is still above the current price, meaning the recovery is still incomplete.
The worry becomes more serious because Bitcoin has already reached which Ethereum does not have. Bitcoin price reached the upper part of its own channel structure to create a higher high around $81,000, meaning Bitcoin led the market rally sharper.
The level Ethereum must recover
Based on this analysis, the bearish deficit view does not become invalid simply because Ethereum is trading above recent lows. According to crypto analyst Ardi, the real test now is whether ETH price can break above $2,420 and turn this area into support.
Price action on the daily chart asks for a confirmation move. A break above $2,420 would be that confirmation move, as it would mean buyers are absorbing supply at the top of the current range. Additionally, a break above $2,420 would also see Ethereum reach the upper limit of its channel, which currently sits around $2,520.
On the other hand, a continuation of the Bitcoin rally would only produce a weak response from ETH. The relationship between Bitcoin and Ethereum has been inconsistent, with Ethereum underperforming Bitcoin so far this year. At the time of writing, ETH is trading at $2,284, down 1.9% in the last 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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