Ethereum Price Analysis: ETH Shows Early Signs Market Exhaustion After Rejection at $1,850
Ethereum is currently consolidating below a major resistance area after rejecting at the $1,850 zone. While the price is holding relatively stable, the momentum is weakening.
Open interest and funding data point to cautious optimism, but upside continuation depends on the buyers defending key short-term levels.
Following the aforementioned rejection at the supply zone, ETH has stalled in a consolidation area with diminishing momentum. The price is still trapped below both the 100-day and 200-day moving averages, which continue to slope downward, signaling bearish macro structure.
The recent rally from $1,500 was strong but lacked follow-through, and the price failed to close above the $1,900 zone. If ETH loses the $1,700 pivot, the next major support sits around $1,500K, which acted as the base of the prior reversal.
The local structure has evolved into an ascending channel, with price currently dropping toward its lower boundary after failing to break the $1,800 resistance zone.
The rejection from the upper bound of the channel and the false breakout above resistance triggered a sharp pullback, suggesting buyer exhaustion. Now, ETH is retesting previous demand around $1,740, and if that breaks, a rapid decline toward the $1,500 level could be expected.
Funding rates remain mostly neutral, with a slight positive bias across exchanges. This reflects a lack of aggressive long exposure, which is healthy for future rallies but doesn’t signal immediate bullish conviction.
Open interest has picked up slightly over the last few days, suggesting renewed participation, but it’s still far from euphoric levels. As long as open interest builds while price compresses, there’s a higher risk of a liquidation event unless buyers step in with force.
On the other hand, ETH’s current funding rate structure suggests that most participants are still waiting on the sidelines. The absence of heavily skewed long or short positioning indicates the market is in balance, but vulnerable to rapid sentiment shifts.
If the asset continues to hover under resistance, aggressive traders may begin fading long setups, leading to downward pressure. However, any sudden upside breakout above the $1,900 area could catch the market off guard, triggering a wave of short covering. Until then, sentiment remains cautiously neutral with a slight bearish tilt in the short term.
Ethereum at Crossroads: Will 0.01941 BTC Be the Key to a Major Breakout?
Ethereum (ETH) has been in a critical accumulation period, consolidating between key support and resistance levels. Analyst Michael van de Poppe highlighted that ETH is approaching a crucial price level around 0.01941. If it breaks above this area, there could be an upward movement, but failing to break it would mean further consolidation.
In recent weeks, Ethereum’s price action has shown signs of gaining momentum. After a sharp decline, ETH stabilized and traded in a narrow range. The price has fluctuated between 0.01850 and 0.01941, with key support around 0.018.
While the price has failed in its recent attempts to rise above the 0.01941 resistance zone, the accumulation continues to increase. If market conditions remain favorable, there could be a breakout. A break above 0.01941 could open the doors for the price to move towards 0.022.
The 0.01941 resistance level is crucial for Ethereum’s price. If ETH breaks above this zone and holds, buying interest should rise significantly. Ethereum’s recent price action has formed a higher low pattern, indicating that it is building a strong foundation for a potential upward move.
The short-term resistance has remained firm for ETH, despite multiple tests. If it continues to struggle to break and hold above the resistance, the price may enter another consolidation phase or potentially slip to new lows. Traders are eying this closely as a confirmation of a breakout or rejection at this level.
Moreover, the Relative Strength Index (RSI) has been in a neutral region, trading close to the 50 level. This means the asset is neither overbought nor oversold, leaving some room for price movements.
The market is in an accumulation phase, and the price tests key resistance at 0.01941 as a possible breakout looms. The next few days could set the tone for whether Ethereum breaks free from the consolidation it has been trading in or remains stuck in sideways trading. If the breakout happens, Ethereum can easily climb in the days to come.
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