ETH Technical Outlook: Ethereum Attempts Recovery From Major Demand After Prolonged Correction

Ethereum is trading within a broader corrective structure after facing strong rejection from the $4,450–$4,950 macro supply zone, where price topped near the 0.786–1.0 Fibonacci levels. This rejection marked a clear distribution phase, ending the previous bullish impulse and triggering a sharp multi-month decline.

The selloff intensified once ETH lost the $4,065–$3,790 region (0.618–0.5 Fib), flipping this area into a strong resistance zone and confirming a bearish structural shift.

EMA Structure (Bearish With Early Recovery Signs)

20 EMA – $3,064

50 EMA – $3,128

100 EMA – $3,309

200 EMA – $3,353

ETH is still trading below the 100 & 200 EMA, keeping the broader trend bearish. However, price has reclaimed the 20 & 50 EMA, signaling short-term strength and recovery momentum. The $3,300–$3,350 zone remains a critical dynamic resistance area.

Fibonacci & Price Structure

1 Fib: $4,956

0.786 Fib: $4,456

0.618 Fib: $4,065

0.5 Fib: $3,789

0.382 Fib: $3,514

0.236 Fib: $3,174

Fib 0: $2,623

ETH is consolidating above the $2,600–$2,750 major demand zone, aligned with the Fib 0 level, where strong buying interest has emerged. Recent price action shows higher lows, suggesting a base formation and increasing probability of a relief rally.

A sustained move above $3,175 (0.236 Fib) opens upside toward $3,500–$3,790, where heavy Fibonacci and EMA confluence resistance exists. A structural shift would require acceptance above $3,790 (0.5 Fib).

RSI Momentum

RSI (14): 68

RSI has pushed into bullish momentum territory, indicating strong short-term buying pressure. While this supports further upside, RSI also suggests ETH is approaching local resistance conditions, making consolidation likely near resistance zones.

📊 Key Levels

Resistance

$3,175 (0.236 Fib)

$3,300–$3,350 (100 & 200 EMA)

$3,514 (0.382 Fib)

$3,789 (0.5 Fib)

Support

$2,950–$3,050 (short-term support)

$2,623 (Fib 0 / major demand)

$2,400 (extended downside support)

📌 Summary

ETH is showing early recovery signs after defending a major long-term demand zone. While momentum has shifted bullish in the short term, the broader structure remains corrective unless Ethereum can reclaim the $3,500–$3,790 resistance zone with strength. Failure to hold above $2,950–$2,620 would put ETH back under downside pressure.

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