Ethereum remains in the correction phase after being rejected in the mid-$3,000 region, the price is moving forward in both the daily and 4-hour periods while on-chain data continues to show the trade leaving the supply structure.
The combination of short-term technical weakness and a long-term constructive chain trend creates an environment in which continued bearish or sideways action in the near term may meet a consistent bullish backdrop.
Ethereum Price Analysis: Daily Chart
On the daily chart, ETH fell after failing to support within the $3,300–$3,400 resistance block, which coincides closely with the 100-day descending moving average and remains below the 200-day moving average.
This rejection keeps the market in a broad position, with $2,500–$2,600 as the closest demand zone and the $3,300–$3,400 band as the main supply zone that will need to reestablish a strong bullish trend. The daily RSI has rebounded from the overbought zone and is now below 50, confirming a bearish trend with a corrective leg towards the aforementioned support group.
ETH/USDT 4 Hour Chart
The 4-hour structure shows a clear breakout from the ascending channel that has been holding the price since the end of December down to the $3,400 area. After losing both channel support and the intraday demand band around $3,000, ETH has moved up at a slower pace to $2,900, with the 4-hour RSI entering the oversold zone, indicating extended daily conditions but not yet confirmed reversal.
As long as the commodity trades below the base of the previous channel and below the $3,000 region, the intraday bias is still being corrected, there is a risk of an extension to the upper term demand around $2,500–$2,600 unless a quick recovery above $3,100 disrupts the breakout.
Onchain analysis
The Ethereum exchange rate has been trending downwards and now sits at its lowest levels in the past few years, indicating that a decreasing portion of the circulating supply is held in centralized trading venues.
This pattern generally reflects a gradual preference for long-term savings or holding fast cash, thereby reducing inventory on the side of sales as prices adjust for the short term.
Although low exchange rates do not prevent further declines in the near term, such persistent outflows have historically been accompanied by late correction phases within larger upswings, where renewed demand can easily translate into unexpected improvements when macro conditions and technology begin to support again.
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