Ethereum (ETH) is trading within a tightening range, consolidating above the crucial $1,800-$1,820 support zone after a significant reset in derivatives market leverage. The price action follows a sharp rejection from the $3,400 macro top, with ETH currently hovering between $1,885 and $1,960 on the four-hour chart.
A major $60 billion flush in open interest has reset total derivatives exposure to approximately $23 billion, significantly reducing systemic leverage risk across futures markets. This compression in volatility and thinning of positioning comes as spot flows stabilize, with macro investors rebalancing their exposure.
Technically, ETH rebounded from a swing low of $1,746, which aligns with the 0.0 Fibonacci level. However, the 0.236 Fibonacci retracement level at $2,137 continues to act as a cap on upward momentum. The price is currently trading below the 100-hour Simple Moving Average and a bearish trend line forming with resistance at $1,920 on the hourly ETH/USD chart (data via Kraken).
The immediate battleground is the $1,900 resistance level, which coincides with the 50% Fib retracement level of the recent downward move from a $1,995 swing high to a $1,811 low. A clear break above the $1,920 trend line resistance could open a path toward $1,965 and potentially the $2,000-$2,020 zone. Conversely, failure to reclaim $1,900 could trigger another decline, with initial support at $1,835, followed by major support clusters at $1,820, $1,780, and $1,740. The $1,720 level is viewed as the main support floor.
Technical indicators reflect the current bearish pressure, with the hourly MACD gaining momentum in the bearish zone and the hourly RSI trading below the 50 level.
