Ethereum price analysis: ETH hit US$2000 encountered the biggest resistance

Ethereum Price Analysis: ETH encounters biggest obstacle on its way to $2000

Ethereum continues to rebound since June lows and is now approaching a key technological turning point. Although recent gains have improved short-term market sentiment, the asset is still trading below an intersection of multiple long-term resistance levels.

Interestingly, the clearing distribution is highly consistent with these technical resistance levels, suggesting that Ethereum may first target liquidity above before the market decides whether to usher in a larger trend reversal or face another round of downward trends.

Ethereum Price Analysis: Daily Chart

At the daily level, Ethereum is still in the broader decline structure that has formed since the beginning of the year. It has rebounded strongly from its main demand area of about $1450 to $1550 and is currently testing a key resistance area of about $1800 to $1850.

This area is particularly critical because it coincides with the downtrend line that has been suppressing prices since May. This level is also an important horizontal resistance level and was used as a support level before falling below in June.

Despite its recent strong trend, Ethereum is still below its 100-day and 200-day moving averages, both of which continue to decline. The 100-day moving average is near the resistance zone of $2000 to $2100, while the 200-day moving average is at a higher level of about $2200, reinforcing the broader bearish market structure.

As long as Ethereum remains below the downtrend line and the resistance zone of $1800 to $1850, the current trend can still be regarded as a rebound in a larger downtrend. A decisive breakthrough in the area will shift the focus to the next major resistance level,$2000 to $2100.

ETH/USDT 4-hour chart

The 4-hour chart shows a clear upward structure that has formed since the late June low. Prices have been moving along the boundaries of the rising channel while forming higher highs and higher lows, reflecting improving short-term momentum.

The market has regained its demand area of US$1620 to US$1640, and has subsequently established another support area around US$1720 to US$1740. These areas have repeatedly attracted buyers during the pullback and continue to define short-term bullish structures.

However, the rally is approaching the upper boundary of the channel and the main resistance band near $1830 to $1850. This creates a natural area where profit-taking and seller activity can occur.

Structurally, Ethereum remains constructive above the US$1720 to US$1740 support area. A break below this level would be the first signal that bullish momentum has subsided and could expose prices to the lower boundary of the channel and broader support areas around $1550.

Sentiment Analysis

Binance ETH/USDT Liquidation Heat Chart provides important clues about the possible next step.

The largest concentration area of short liquidity is above current market prices, especially in the $1950 to $2100 range. This cluster is surprisingly consistent with the daily resistance zone, the 100-day moving average, and the larger supply area visible on higher time frames.

At the same time, there is still a large liquidity pool in the approximately US$1450 to US$1550 area below the market, which closely corresponds to the main daily demand area that has supported Ethereum during the recent rebound.

The coincidence between the liquidation chart and the technical structure suggests that the market may be attracted first to the liquidity cluster above. Entering the $2000 to $2100 region will effectively eliminate a large number of short liquidations while testing one of the most important resistance areas on the chart.

Market reactions in the region will likely determine the next major directional trend. If buyers can regain the $2000 to $2100 resistance zone and stand firm, the rally could turn into a broader bullish trend reversal. However, if the liquidity cleanup encounters strong selling pressure and is rejected by resistance, Ethereum may fall significantly again, possibly targeting a large pool of liquidity near the US$1450 to US$1550 support area below the market.