Ethereum Price Bounces Off Demand, Faces Supply Test

Overview

Ethereum is recovering toward $2.55K after buyers responded to the latest selloff near a key demand area. The rebound preserves the broader ascending structure, but ETH still needs to reclaim overhead supply to demonstrate a more durable recovery.

Daily Chart Analysis

The daily timeframe shows Ethereum's correction extended into the $2.36K–$2.42K demand zone before producing a notable lower wick and several recovery candles. The price has since climbed toward $2.55K, suggesting that buyers are defending the region following the sharp decline from the recent consolidation. ETH also remains within the broader ascending channel and above both major moving averages.

4-Hour Chart Analysis

The 4-hour chart shows Ethereum rebounding after briefly piercing the $2.43K–$2.48K demand zone and the lower ascending trendline. The subsequent recovery above both suggests rejection of lower prices, although the earlier selloff has left ETH trading beneath the rising structure's middle trendline.

Sentiment Analysis

The Ethereum Spot Average Order Size chart classifies spot activity by average trade size, distinguishing normal orders from retail-sized and whale-sized activity. The latest observations remain predominantly in the normal-order category, including the recent advance toward $2.7K and the subsequent correction toward $2.5K. This contrasts with the frequent whale-sized readings visible during earlier periods, particularly around the June–August price base.

Conclusion

A sustained break below the recent wick low around $2.4K could then expose the next highlighted support area at $2.22K–$2.28K. Reclaiming the supply zone would strengthen the recovery scenario and allow another challenge of the recent $2.8K high, followed by the $2.9K–$3K resistance region.