Ethereum remains under pressure after failing to reclaim a major resistance cluster and is now hovering around a key long-term support zone. The broader structure suggests sellers still dominate the market, while weakening demand from U.S. investors adds an extra layer of caution.
Ethereum Price Analysis: The Daily Chart
On the weekly timeframe, ETH has extended its rejection from the major horizontal resistance region near $2,400. This zone has repeatedly served as a pivotal level during the current cycle and has again capped upside momentum. The rejection has pushed the asset back toward the ascending trendline that has supported the market since the 2022 bear market low.
ETH is currently trading around $2,000, sitting just above the trendline and the $1,800 demand zone. This area represents the most important support cluster on the chart because it combines horizontal support with the long-term rising trendline.
As long as ETH remains above this confluence, the long-term bullish structure stays intact. However, a decisive breakdown below the trendline and the $1,800 support region could trigger a substantial correction toward the next major support around $1,500 and would likely increase panic among even long-term holders.
On the upside, the $2,400 zone remains the primary resistance. Reclaiming that area would be the first sign that buyers are regaining control and could open the door for a move toward $4,800. Yet momentum indicators remain weak—RSI on the weekly chart has not reached deeply oversold territory—so downside pressure may not be exhausted. Consequently, a deeper decline to retest the critical support area is a likely short-term scenario.
ETH/USDT 4-Hour Chart
The 4-hour chart shows a similarly bearish picture. ETH continues to trade inside a descending channel, characterized by lower highs and lower lows since mid-May. After rejecting the $2,150 supply zone, the market resumed its downward trajectory and is now moving back toward the channel’s lower boundary. The price currently sits inside the $1,950 to $2,000 support area, which is preventing a sharper drop for now.
Nevertheless, the descending channel remains the dominant technical feature. While ETH stays below the channel’s upper boundary and the $2,150 resistance zone, short-term momentum favors sellers. A breakdown under the current support region could expose the liquidity pocket around $1,950 and potentially spark long-liquidation cascades that push the price lower to test the channel’s lower boundary.
Conversely, a successful defense of the $1,950 area followed by a breakout above the channel’s upper trendline would be the first sign of broader recovery, potentially targeting $2,150 and then the key weekly resistance at $2,400.
Sentiment Analysis
The Coinbase Premium Index continues to signal weak spot demand from U.S. investors. The metric has largely stayed in negative territory throughout May and recently declined to about -0.13, one of its lowest readings in the past year.
Historically, sustained positive Coinbase Premium readings tend to accompany periods of strong institutional and U.S.-based buying. In contrast, current negative values indicate ETH is trading at a discount on Coinbase relative to offshore exchanges, reflecting weaker demand from an important market segment.
This weakness aligns with Ethereum’s ongoing downtrend and helps explain the market’s inability to reclaim the $2,400 resistance zone. While deeply negative Premium readings can sometimes precede local bottoms as selling becomes exhausted, the metric currently shows little evidence of aggressive accumulation. Unless the Coinbase Premium Index begins to recover toward positive territory, supply and demand dynamics will likely continue to support the cautious outlook implied by the technical structure.