Ethereum’s price recovery has faltered once again, failing to sustain strength near the critical $2,400 resistance zone. The broader market context shows attempts to stabilize after a sharp downtrend, but repeated rally rejections and ongoing geopolitical tensions highlight weak buyer follow-through. Technical analysis indicates Ethereum remains below key moving averages, with sentiment metrics warning of elevated leverage and potential for increased volatility.
The second-largest cryptocurrency’s recovery attempt is losing momentum again after failing to sustain near the key $2,400 resistance zone. The broader context remains a market trying to stabilize after a sharp downtrend, but repeated rejections on rallies and concerns over geopolitical conflict continue to highlight weak follow-through from buyers.
On the daily timeframe, Ethereum remains firmly below the 100-day and 200-day moving averages, which are located around the $2,500 and $3,100 levels respectively. The overall structure is still characterized by lower highs, and the recent bounce has not been strong enough to break out of the descending channel pattern.
The price recently pushed into the $2,400 supply zone but failed to hold, reinforcing this region as a key resistance cluster. As long as ETH trades below it, the broader trend remains tilted to the downside, with the $1,800 support area being the most probable target for the market to visit.
On the 4-hour chart, the short-term recovery structure has clearly weakened as ETH fell below its ascending channel support. The fake breakout and rejection from the upper boundary near $2,400 led to a sharp pullback, and the asset is now hovering around the $2,000 level.
If ETH loses $2,000 with conviction, the next logical move would be a retest of the $1,800 demand zone. To regain strength, buyers need to push the price back above the recent high at $2,200 to shift the short-term market structure.
From a sentiment perspective, the Estimated Leverage Ratio is flashing a warning signal as the metric has risen sharply to elevated levels compared to previous periods. This indicates that a significant amount of leverage has built up in the system.
High leverage typically increases the probability of volatility because crowded positioning can lead to cascading liquidations in either direction. Combined with the lack of strong spot-driven follow-through, sentiment appears unstable with the potential for sharp moves driven by positioning rather than organic demand.
