ETH continues to exhibit a distinct downtrend, with the market responding swiftly to macroeconomic risks and geopolitical developments. Amid the ongoing conflict in the Middle East, Ethereum hovers around the 1,800 mark on the chart, positioned within a crucial demand zone that buyers have repeatedly attempted to uphold. The daily structure continues to exhibit a bearish trend within a descending channel, with the price constrained by the downtrend lines and the overhead 100-day and 200-day moving averages. Until ETH reclaims the significant $2,400 and $2,800 resistance levels, rallies appear to be more akin to relief bounces rather than a genuine reversal.
In the meantime, the adjacent support area is situated within the $1,850–$1,700 demand zone. Should this level fail to hold, the subsequent downside levels to monitor are approximately $1,600 and the $1,400 mark, positioned just above the lower trendline of the descending channel. On the 4-hour timeframe, ETH is exhibiting characteristics of a range within the broader downtrend, with the price oscillating between the support level near 1,800 and the resistance level near recent highs around $2,150. The recent attempt to breach this level was met with a clear rejection, maintaining a downward tilt in short-term momentum. A bullish shift necessitates maintaining the $1,850 level and subsequently reclaiming the $2,150 highs with consistent follow-through, potentially paving the way for a move back toward the $2,400 supply zone.
However, should the $1,850 support level falter and transform into resistance upon a retest, the pathway to the $1,600 threshold and lower will be unobstructed. The Ethereum Total Value Staked chart reveals a pronounced upward trajectory, even as the price experiences a downward trend, indicating a supportive long-term signal. This indicates that an increasing amount of ETH is being committed to staking instead of remaining liquid, which gradually diminishes the supply that is readily accessible. This behavior may stem from the enduring belief of investors, who are purchasing ETH at reduced prices and committing to long-term holdings.
However, this does not imply that the bottom is assured to be close, as the price may still decline if forced selling and deleveraging persist. However, should the market regain the crucial resistance levels while staking continues to rise, it bolsters the argument for a more sustainable recovery in the future.