Ethereum’s price rally from June lows has brought it to a critical technical resistance zone around $1,800-$1,850, where a descending trendline and horizontal resistance converge on the daily chart. According to technical analysis, the asset remains below its 100-day and 200-day moving averages, reinforcing a broader bearish structure. However, a concentration of short-side liquidity in the $1,950-$2,100 region, as shown by liquidation data, suggests the market may first target these overhead levels. The reaction at this resistance will likely determine if the recovery evolves into a trend reversal or if Ethereum corrects toward support near $1,450-$1,550.
Ethereum has continued its recovery from the June lows and is now approaching a major technical inflection point. While the recent rally has improved short-term sentiment, the asset is still trading beneath a confluence of long-term resistance levels.
Interestingly, the liquidation landscape aligns closely with these technical barriers. This alignment suggests that ETH could first target overhead liquidity before the market decides whether a larger trend reversal is underway or another corrective leg lower remains ahead.
On the daily timeframe, ETH remains within a broader descending structure in place since the beginning of the year. It has recovered strongly from the major demand zone around $1,450-$1,550 and is currently testing the key resistance region around $1,800-$1,850.
This area is particularly significant because it coincides with the descending trendline that has capped price action since May. The level also represents a major horizontal resistance that previously acted as support before the June breakdown.
Despite the recent strength, ETH remains below the 100-day and 200-day moving averages, both of which continue to trend lower. The 100-day MA is positioned around the $2,000-$2,100 resistance zone, while the 200-day MA remains considerably higher near $2,200.
The 4-hour chart highlights a clear ascending structure that has developed since the late-June low. Price has respected the rising channel boundaries while forming higher highs and higher lows.
The most significant concentration of short-side liquidity sits above the current market price. This cluster aligns remarkably well with the daily chart resistance zone and the 100-day moving average.
The alignment between the liquidation map and the technical structure suggests that the market may first be drawn toward the overhead liquidity cluster. The reaction at that region will likely determine the next major directional move.
