Ethereum’s near-term outlook remains fragile as traders weigh technical pressures against improving on-chain balances. On the 4 hour chart, $ETH The price continues to maintain a downward trend even after dropping sharply from around $3,400. The price is currently trading around $2,050, and participants seem more cautious than confident.
Recent market trends suggest consolidation rather than recovery as sellers continue to protect overhead levels. Therefore, analysts believe that upside potential is limited, except in the following cases: $ETH Prove your strength to surpass nearby resistance zones.
Control the bears with short-term structure
Ethereum’s 4-hour structure shows a controlled downtrend with price holding below the major channel band. The bounce off the $1,860 low lacks strong follow-through and resembles a correctional move.
moreover, $ETH continues to stall below the mid-channel zone, indicating weak demand during the uptrend. This action suggests that traders are still selling on strength rather than chasing a breakout. So while the price ceiling is kept below $2,150, the broader structure is advantageous to sellers.
Ethereum price trend (Source: Trading View)
Resistance levels are still well defined and technically important. The $2,135 to $2,150 area continues to serve as an instant rejection zone. Additionally, the 0.382 Fibonacci level near $2,377 represents the first meaningful barrier to momentum improvement.
Above that, $2,573 matches the 0.5 retracement and previous supply. Importantly, the 0.618 retracement around $2,768 remains a key level where the bears need to lose shift control.
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As a disadvantage, $ETH holds short-term support between $2,000 and $2,020. This zone has psychological significance and daytime relevance. A failure here could expose the recent swing low near $1,863.
Furthermore, $1,740 is the last major demand zone from this decline. A rise towards this level would confirm the continuation of the trend.
Momentum indicators continue to support the bearish picture. DMI data shows ADX near 31, reflecting a strong trending environment.
However, the negative directional index is still above the positive line. As a result, despite recent sideways price movements, sellers are still in control of momentum.
Adding context with derivatives and spot flows
Ethereum’s open interest data shows a familiar cycle of expansion and reset. Open interest expanded during the rally, reflecting increased leverage. The sharp decline forced liquidations and rapid unwinding of positions.
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Recently, open interest has fallen sharply from a high level. This decline suggests a broader deleveraging phase rather than a panic. Therefore, liquidation risk appears to be low in the short term.
Spot flow data adds a layer of contrast. Sustained currency outflows dominated much of the period. These withdrawals indicate tightness in holding behavior and circulating supply. However, net flows have recently compressed to near neutrality. This change suggests balance rather than active accumulation. Furthermore, recent capital inflows remain modest, indicating caution regarding current prices.
Technical outlook for Ethereum price
Ethereum’s key levels remain well-defined as the market moves through a fragile recovery phase.
Immediate hurdles for the upside are at $2,135 and $2,150. If confirmed above this zone, it could open room for $2,377, which could continue to $2,573 if momentum improves. The upper limit of key resistance remains at $2,768, and a reversal would be needed to signal a broader trend change.
On the downside, $2,000-$2,020 serves as short-term support and a key psychological zone. If this region is lost, perhaps $ETH You'll be back towards $1,863. Below that, $1,740 is the last major demand zone for this leg.
The technical structure suggests that Ethereum is still in a correction phase within a broader downtrend. Price remains below key Fibonacci levels and descending channel resistance, leaving any attempts at upside vulnerable. Although recent consolidation suggests downward pressure is slowing, momentum indicators remain in favor of sellers.
Will Ethereum go up?
Ethereum’s near-term direction will depend on whether buyers can confidently defend the $2,000 zone and recover $2,150. A successful breakout could trigger a move towards $2,377 as volatility increases.
However, if the support is not maintained, there is a risk that the price will once again be headed towards the $1,860-$1,740 level. For now, $ETH Confirmation, not expectation, is at the crucial level that determines the next action.
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