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Ethereum price analysis: ETH tests key resistance levels after breaking through the channel

2026-07-21 00:32:20
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Ethereum Price Analysis: After the channel breakthrough, ETH tests key resistance level

Ethereum has continued its rebound trend in the past few weeks, but the current rally is approaching a technically sensitive area. Although recent price strength has improved short-term market sentiment, the structure of the higher time frame has not yet confirmed a sustained trend reversal, leaving room for increased volatility around current price levels.

Ethereum Price Analysis: Daily Chart

On the daily chart, ETH has broken through the upper track of the downward channel that has dominated the overall downward trend for several months. Although this initially appears constructive, a breakthrough has not yet been confirmed and could still turn into a false breakthrough if prices fail to hold above the resistance level in the front channel in the next few trading days.

The US$2,000 - 2,150 supply area remains the main obstacle facing bulls. Despite recent improvement in price movements, the region has been strengthened by the downward 100-day moving average, constituting an important area of concentrated resistance.

On the downside, the US$1,750 - 1,800 area is currently the first line of defense. Holding this area will maintain the integrity of breakthrough attempts, while failure to comply could drag ETH back into the broader demand area around $1,500 - 1,550 and confirm that the breakthrough channel is just a liquidity sweep rather than a true trend reversal.

ETH/USDT 4-hour chart

The 4-hour chart shows that Ethereum is consolidating within a rising flag after a sharp pulsed rise since its July low. The current pullback does not show immediate weakness, but is more likely to develop into a correction phase in the overall recovery.

The white uptrend line represents flag-shaped intraday dynamic support and continues to attract buyers during the recent correction. As long as ETH continues to respect this trend line, it is structurally conducive to challenging the recent band high of about $1900 again.

However, a decisive break in rising support would negate the flag structure and expose a blue demand area of about $1,760 - 1,800, when buyers could try to regain control.

Sentiment Analysis

Exchange Inflows (Top 10) indicator tracks the amount of ETH transferred to exchanges in the largest deposit transactions, which are typically associated with giant whales and institutional participants. [TAG

Recent data suggest that exchange inflows from large players have remained relatively subdued after several notable spikes earlier this year. Although Ethereum recovered to around $1800, the latest reading is well below its previous peak, indicating that selling pressure on major market participants has not increased significantly.

This relatively mild inflow pattern is consistent with the current technical architecture. While this does not guarantee further gains, large investors are not actively depositing tokens into exchanges, indicating that large-scale profit-taking has not yet occurred. As long as the short-term support structure remains intact, Ethereum is expected to continue to test higher resistance levels.

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