Ethereum is consolidating beneath $2.5K resistance after a recovery from the $1.5K region, with technical weakness evident in short-term momentum despite constructive longer-term structure.
Daily Chart Analysis
ETH formed a base around $1.5K-$1.6K before beginning a sustained recovery that pushed the price above $2K and into the $2.5K zone. The most important near-term resistance is the $2.5K area, where ETH has spent several weeks consolidating and repeatedly struggled to confirm a breakout.
On the downside, the first important support appears around $2.0K-$2.1K, which overlaps with the 100-day and 200-day moving averages. The 200-day moving average sits around $2.05K and is rising, while the 100-day moving average is also turning upward near $1.95K.
4-Hour Consolidation Range
The 4-hour chart shows ETH trading within a broad horizontal range extending from approximately $2.35K to $2.6K, with $2.5K acting as the central resistance area. ETH recently fell from the upper half of the range to trade around $2.4K.
The $2.35K area represents important short-term support. A breakdown below this level would weaken the range structure, with the next visible support at the $2.25K order block. Loss of that region would expose the broader $1.9K support area.
The 4-hour RSI has fallen toward the 30 region, indicating significantly weaker short-term momentum following the rejection from $2.5K. Price's reaction around $2.3K-$2.35K will be important for determining whether this represents a pullback within the range or the beginning of a deeper correction.
On-Chain Indicators
Exchange-reserve data shows a clear long-term decline in ETH held on exchanges. The visible reserve level has fallen from above 21M ETH during the first half of 2025 to approximately 14.6M ETH currently.
Notably, the decline in exchange reserves has continued even as ETH recovered toward $2.4K, indicating that the amount of ETH tracked on exchanges has been trending lower. A continued reduction in exchange balances can mean fewer coins are immediately available on exchanges for potential selling, which can reduce readily available exchange supply. However, the metric by itself does not establish future price direction.
