ETH Needs To Recover This Key Level To Regain Control Of The Continued Rally

Ethereum is still trading within a broad bearish structure, but recent price action is showing signs of short-term stability above a key support area. After the sharp selloff seen at the beginning of February, ETH was able to support the area around $1,800, and buyers are hoping for another push higher, although the market still needs a strong break to ensure a meaningful recovery.

Ethereum Price Analysis: Daily Chart

On the daily chart, ETH remains below the 100-day and 200-day moving averages, which keeps the long-term trend down. The stock is also still trading within a bearish channel, while the $2,400 and $2,800 areas continue to act as key barriers to any major breakout.

At the same time, the market has been holding above the blue demand region around $1,800 to $1,700, which is the most important support range at the moment. As long as ETH stays above this area, the structure can continue to form in the short term, but a daily retracement of the $2,400 region is still needed to suggest that the broader bearish pressure is starting to weaken.

ETH/USDT 4 Hour Chart

On the 4-hour chart, ETH is moving steadily higher from late February and is now pushing towards the $2,150 resistance level again. An upward short-term line formation from recent lows also points to developing momentum, while the RSI has retreated above the median line and supports the case for a strong recovery attempt.

Nevertheless, the price has not yet come out, and the level of $ 2,150 remains the main starting point in the near term. A clean move above it could pave the way towards the $2,400 supply area, while another rejection could keep ETH stuck within its current range and bring it back to the $1,800 support levels.

On-Chain Analysis

From an on-chain perspective, the Ethereum exchange reserve continues its downward trend and has now dropped to around 16.1 million ETH, which is a significant long-term bullish signal. Continued declines suggest that more coins are being removed from exchanges, usually indicating lower selling pressure and a strong preference for holding over distribution.

That said, the stock trend is more of a supportive background factor than a definitive timing signal. In the short term, ETH still needs price confirmation by a break above the nearest resistance, but the continued decline in exchange rates reinforces the idea that downward pressure may be more limited than before if demand starts to improve.