Ethereum has entered a consolidation phase after a short-term recovery, with the price stalling below key resistance levels. Yet, considering market sentiment, the asset could be on the verge of a deeper decline.

Technical Analysis

By Edris Derakhshi

The Daily Chart

ETH’s daily chart shows that the price is still struggling to break above the $2,200 resistance zone. The recovery from the $1,800 low has lost momentum, and ETH continues to trade well below the 200-day moving average, which sits near $2,900.

The RSI is also cooling off just under the 50 level, reflecting a lack of strong trend direction. For the buyers to regain control, ETH must close above $2,200 and follow through toward $2,400. Failure to do so risks a slow bleed back toward the $1,800-$1,900 support zone.

The 4-Hour Chart

On the 4-hour timeframe, Ethereum is now breaking below the lower boundary of the ascending channel, signaling a potential shift in the short-term trend. The breakdown from this rising structure around the $2,000 mark shows bullish momentum has weakened, and buyers failed to defend the channels support.

Moreover, the RSI is trending downward, reinforcing bearish pressure. If this breakdown holds, ETH could revisit the $1,900 demand zone next. A recovery back above $2,100 would be needed to neutralize the bearish structure, but as it stands, the risk of further downside is increasing.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Coinbase Premium Index (30-day EMA)

The Coinbase Premium Index remains in negative territory, indicating that Ethereum is still trading at a discount on Coinbase compared to other major exchanges. This suggests that US-based investors — often viewed as institutional or more conservative — show limited demand or even distribute.

Persistent negative premium typically reflects weak spot market interest from the US, which can weigh on price action, especially during uncertain market phases. Until this metric flips positive and holds, it signals a lack of strong spot-driven accumulation and adds to the bearish undertone in the current ETH environment.

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