Ethereum Faces Crucial Resistance Ahead of Potential Trend Reversal
Ethereum has been stabilizing after its sharp correction from yearly highs, with buyers attempting to regain control.
The asset is still trading below both the 100-day and 200-day moving averages, which are currently converging around $1.95K and $2.05K levels, respectively, indicating a bearish market structure despite recent rebound.
A successful breakout above the current resistance zone of $1.9K to $2K could pave the way toward the next resistance zone around $2.4K, while a breakdown below the key demand zone at $1.5K would weaken the short-term bullish structure.
The recent recovery has not yet been accompanied by a meaningful improvement in underlying network participation, as daily active addresses have stabilized around the 400K range after declining significantly from earlier in the year.