Ethereum’s Wild Ride: When Bulls Get Tired and Bears Take a Nap 🐂🐻

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Well, folks, it looks like Ethereum has decided to take a little breather after its wild sprint. 🏃‍♂️💨 The price is now chilling between some key support and resistance zones, trying to figure out if it’s time to break above the $2,700–$2,800 region or just take a nice, long nap. 😴

But hey, don’t get too comfy! The on-chain fundamentals are hinting at some serious shifts. 🤔 This could mean a bumpy ride ahead as the market tries to decide its next move. So, buckle up, buttercup! 🚀

Technical Analysis

By ShayanMarkets

The Daily Chart

On the daily chart, ETH is still hanging out in its ascending channel, finding support around the $2,400 area but struggling to break above the $2,800 mark. 🚧 The upper boundary of this channel, along with the 200-day moving average and a key order block from February, is acting like a brick wall. 🧱 Each time ETH tries to break through, it gets rejected, but the bulls are still holding the fort for now. 🐂

Momentum, however, is starting to wane. The RSI is hovering around 51, which is like saying, “I’m not sure if I want to go to the gym today.” 🏋️‍♂️ If ETH can reclaim the upper range and turn the $2,700–$2,800 area into support, it might just shoot up to $3,000 and beyond. But if it breaks below $2,400, the bears might take over and drag it down to $2,150. 🆘

The 4-Hour Chart

Zooming in on the 4H chart, ETH is still grinding within the same rising channel. After the recent drop from $2,875 to $2,430, the price retraced into the 0.5–0.618 Fibonacci zone, but got rejected and is now consolidating below it. This area, between $2,600 and $2,700, has been a real pain in the neck for bulls, rejecting their attempts multiple times. 🤦‍♂️ For short-term traders, this is the key level to watch.

Until this resistance breaks, ETH might just keep dancing in its range. The RSI has recovered slightly from oversold conditions, now sitting near 52. This suggests a slight uptick in momentum, but there’s still no clear sign of bullish dominance. If the bulls can’t break above this key fib zone soon, another drop toward the lower boundary of the channel near $2,400 is likely. 📉

Sentiment Analysis

One of the most important long-term signals for Ethereum is the consistent downtrend in exchange reserves. Currently at 18.8 million ETH, this is one of the lowest levels in recent history. 📉 Exchange reserve data shows how much ETH is held on centralized trading platforms, and a downtrend means coins are being withdrawn into self-custody, staking, or cold wallets. 🏦

Historically, sustained drops in exchange reserves suggest a supply squeeze narrative building beneath the surface. Fewer tokens on exchanges reduce the available selling pressure and can lead to explosive upside when demand rises. 🚀 Even as ETH struggles to break out technically, this silent accumulation phase shows confidence among long-term holders. If this trend continues, it might act as a powerful tailwind once technical resistance levels are finally breached. 🌬️

 

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2025-06-20 16:54