Ethereum’s price is struggling after failing to break through a significant resistance level. It’s currently near a crucial long-term support area, indicating that sellers are still in control. Reduced interest from US investors is also adding to the uncertainty.
Ethereum Price Analysis: The Daily Chart
Looking at the weekly chart, Ethereum (ETH) has been unable to break through the strong resistance level around $2,400. This price point has repeatedly stopped ETH from going higher during the recent market cycle. As a result, the price has fallen back towards a long-term upward trendline that has provided support since the low point of the 2022 bear market.
Ethereum is currently trading around $2,000, slightly above a key trendline and the $1,800 support level. This $1,800 area is a significant support zone because it combines a horizontal support level with a long-term upward trendline, making it a strong area where the price is likely to bounce.
If ETH continues to stay above its current level, the overall long-term market trend should remain stable. But, if the price drops decisively below the trendline and the $1,800 support level, it could cause a significant price drop, potentially down to around $1,500, and trigger widespread selling, even from investors who typically hold for the long term.
The $2,400 level continues to be a key resistance point. If the price can break above this, it would suggest buyers are starting to take control, potentially leading to a rise towards $4,800. However, the weakening momentum, indicated by the RSI, suggests the price may not yet hit its lowest point. Therefore, a further drop to test lower support levels is the most likely outcome in the near future.
ETH/USDT 4-Hour Chart
Looking at the 4-hour chart, the price of ETH is still trending downwards. It’s been moving within a descending channel since mid-May, consistently making lower highs and lower lows. After failing to break through the $2,150 resistance level, the price has resumed falling and is now approaching the bottom of this channel. Currently, the price is finding some support between $1,950 and $2,000, which is preventing a more significant drop.
The overall technical picture still points to a downward trend. As long as Ethereum stays below $2,150 and within the established pattern, it’s likely sellers will continue to drive the price down. If the price falls below current support levels, it could quickly drop to around $1,950, potentially triggering a larger sell-off and testing lower price levels.
If the price can hold above $1,950 and then rise above the upper edge of the current trading channel, it would likely signal the start of a larger price increase, potentially reaching $2,150 and then the important resistance level around $2,400.
Sentiment Analysis
Coinbase’s Premium Index suggests that U.S. investors aren’t currently buying much Bitcoin. The index has been mostly negative throughout May and recently dropped to around -0.13, which is one of its lowest points in the last twelve months.
In the past, when Coinbase showed higher prices than other exchanges (a ‘positive premium’), it usually meant a lot of buying was happening, especially from institutions and buyers in the U.S. Now, the opposite is true: ETH is cheaper on Coinbase than on exchanges elsewhere, which suggests that demand from these important buyers is slowing down.
Ethereum’s recent weakness fits with its overall downward trend and explains why it’s been difficult for the price to break above $2,400. Although very negative readings sometimes happen before a price drop ends, this indicator isn’t currently showing strong buying activity. Unless buying pressure increases – shown by the Coinbase Premium Index moving back into positive numbers – the current cautious forecast based on technical analysis remains likely.
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2026-06-02 14:41