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Ethereum Bulls Eye $1,935 Resistance as Recovery Gains Momentum

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ETH
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Ethereum has been showing signs of recovery after enduring nearly six months of intense selling pressure. According to recent on-chain data, this prolonged period of capitulation could potentially set the stage for a new bullish phase.

The 'Supply in Profit/Loss' model shows that about 45.7 million ETH are currently underwater compared to 31.6 million held at a gain. This indicates that most investors are at a loss, which often precedes major market bottoms.

As Ethereum's price staged a strong comeback from its June low, rebounding from near $1,500 and reclaiming both the 26-day and 50-day moving averages, buyers have regained some control over the market's intermediate trend. However, Ethereum faces a significant technical barrier near $1,935, where the declining 100-day exponential moving average has blocked several prior rally attempts.

A decisive close above this level could reinforce the bullish trend and refocus market attention on the psychological $2,000 mark. Positive momentum remains despite recent price consolidation, with the relative strength index currently ranging between 58 and 60, signaling steady buying demand without entering overbought conditions.

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