Ethereum (ETH) is facing a critical technical test as it struggles to break above a key resistance level known as the daily Supertrend indicator. This level has acted as a strong barrier for the second-largest cryptocurrency since October 2025, rejecting multiple price advances over the past several months. The repeated failures to reclaim this level suggest that sellers are still in control of the market momentum.
Technical analysts are closely watching the $2,147 to $2,150 zone. According to crypto commentator Ali Martinez, a sustained daily close above $2,147 could open the door for a more substantial rally toward $2,335 or even $2,542. Similarly, analyst Ted noted that a daily close beyond $2,150 could trigger a move toward the $2,400 zone, while a failure to do so might lead to a retest of the $2,000 psychological support level.
On-chain data provides a bullish backdrop for the potential breakout. The supply of ETH on centralized exchanges has plummeted to approximately 15.93 million tokens, its lowest level since the summer of 2016, according to CryptoQuant. This significant outflow suggests investors are moving holdings to self-custody, reducing immediate selling pressure and indicating a longer-term accumulation mindset.
However, not all signals are positive. Some analysts warn of potential downside risks. Market observer Emirhan identified $2,109 as a key level, suggesting a break below it could lead to a drop under $1,900. Additionally, Ethereum's Relative Strength Index (RSI) recently crossed the bearish 70 threshold, signaling the asset may be overbought and due for a pullback.
The consensus among traders is that a confirmed breakout above the Supertrend resistance could shift market sentiment decisively in favor of the bulls, potentially sparking a significant rally. Until that happens, the market is likely to remain cautious, trading within a consolidation phase defined by this critical technical level.
