Ethereum remains constrained beneath a significant higher-timeframe resistance cluster, even as it has demonstrated a robust recovery from its June lows. The asset has returned to a crucial support zone as a result of the recent rejection near local highs, and the price is getting close to a technical decision point that should decide if buyers can continue the rebound toward higher resistance or whether another corrective leg takes place. On the daily timeframe, ETH persists in trading beneath the descending 100-day and 200-day moving averages, indicating that the overarching market structure continues to exhibit bearish characteristics, notwithstanding the recent rebound.
The asset recently struggled to maintain its position above the short-term resistance near $1.9K and has subsequently retraced into the $1.75K-$1.85K demand zone. This region has served as a support level during the ongoing recovery and now constitutes the primary line of defence for buyers. As long as Ethereum maintains its position above this area, another movement toward the significant decision zone between $2K and $2.15K remains plausible. This region also aligns with the descending long-term trendline and the declining 100-day moving average, establishing it as the most significant resistance cluster on the daily chart. A successful breakout above this confluence would signify a notable structural enhancement, whereas a rejection would probably redirect focus toward the long-term demand zone in the range of $1.45K-$1.55K.
The 4-hour chart indicates that Ethereum is experiencing a pullback following its inability to surpass the recent swing high around $1.95K. The correction has pushed it back to the short-term demand zone around $1.76K-$1.84K, which has repeatedly attracted buyers over the past week. This area now functions as the essential support required to maintain the series of higher lows established since early July. Maintaining a position above this level could facilitate another effort to reach the upper limit of the existing recovery framework and ultimately the daily resistance near $2K. However, losing this demand zone would likely expose the lower support levels around $1.7K before buyers attempt another recovery. The liquidation heatmap reveals a significant aggregation of short liquidations situated above the prevailing market level, with the most prominent liquidity cluster located in the $1.95K-$2K range.
Importantly, this liquidity pool aligns closely with the key technical resistance observable on both the daily and 4-hour charts. The cluster is positioned directly beneath the higher-timeframe supply zone in the range of $2K-$2.15K and adjacent to the descending trendline, establishing a robust confluence between derivatives positioning and technical resistance. This alignment enhances the likelihood that Ethereum may initially execute an upside liquidity grab within the $1.95K-$2K range to liquidate leveraged short positions prior to encountering renewed selling pressure from the overhead supply zone. This scenario would be refuted by a clear breakout of the daily resistance and the liquidity cluster, strengthening the argument for a more general bullish reversal.