Ethereum has rebounded toward $2.37K after finding demand near $2.3K, but it still trades below its broken ascending channel. Buyers show an initial response, yet the sequence of lower highs keeps the outlook cautious.
Ethereum rebounded toward $2.37K after buyers stepped in near $2.3K. The recovery remains below the broken ascending channel, however, and the analysis calls the outlook cautious.
Daily chart shows a demand zone holding
On the daily timeframe, Ethereum's correction extended into the $2.22K–$2.31K demand zone before consecutive recovery candles appeared. The rebound suggests buyers are defending the upper portion of this region, although it has yet to reverse the bearish structure established after September's peak.
ETH sits beneath the ascending channel's former lower boundary, which now represents potential resistance. The $2.47K–$2.52K supply zone overlaps with that broken structure, creating an obstacle to a sustained recovery.
Holding above $2.31K could support a rebound toward $2.4K–$2.44K and then the supply zone. Until Ethereum reclaims $2.47K–$2.52K and the channel boundary, the advance appears corrective.
Four-hour chart points to a descending channel
The 4-hour chart shows Ethereum recovering within a descending channel after consolidating around $2.3K. A short sequence of higher lows carried the price toward $2.37K, but the broader downtrend remains intact.
Immediate resistance sits around $2.39K–$2.42K. Clearing it would bring the channel's upper boundary around $2.46K–$2.48K into focus. A loss of the $2.33K–$2.35K recovery base, by contrast, would increase the risk of another visit to the $2.27K–$2.31K support zone.
Liquidation clusters flank the price
The two-week Binance ETH/USDT heatmap highlights bands around $2.39K–$2.4K and $2.43K–$2.44K that could become relevant if the rebound continues. A move through the $2.43K–$2.44K cluster could trigger short liquidations and accelerate the rebound toward descending resistance.
Below the price, a prominent liquidation band remains around $2.27K–$2.29K. The heatmap supports the possibility of a short-term liquidity-driven rebound, while the technical trend remains bearish beneath overhead supply.
Source: CryptoPotato
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