Ethereum (ETH) is trading within a narrowing range, with the price recently dipping below the critically watched $1,940 resistance level as bullish momentum shows signs of exhaustion. After recovering sharply from the June lows, Ether is now battling to maintain its higher-low structure while facing increased selling pressure.
On the daily chart, ETH remains trapped beneath both the 100-day and 200-day moving averages. Sellers quickly pushed the price back from the $1.95K region down to the $1.88K–$1.91K supply zone. A breakout above this area is necessary to target the $2.02K–$2.15K resistance cluster, where the two moving averages converge. Until then, the risk of another rejection remains elevated.
The $1.75K–$1.79K demand zone continues to act as the first significant support. A breakdown below this area would likely accelerate a correction toward the $1.56K–$1.64K range. On the 4-hour timeframe, a compression pattern has formed between an ascending white trendline and a descending yellow trendline. This indecision reflects a market in equilibrium as neither buyers nor sellers have established control.
Data from Binance liquidation heatmaps reveals substantial liquidity clustered around $2K on the upside and $1.82K on the downside. The current price hovering between these pools suggests that Ethereum may experience choppy, range-bound action before a sweep toward either level triggers a volatility spike.
Funding rate metrics signal cautious optimism. Open interest-weighted funding remains mostly positive, indicating that leveraged long positions still dominate. However, the optimism has softened slightly, aligning with a market in wait-and-see mode. Earlier rallies coincided with strongly positive funding, while negative spikes marked sharp corrections. The present mildly positive funding reflects traders buying guarded exposure.
Trading activity around $1,881 saw volume rise to approximately $12.89 billion as ETH declined 3.87% in 24 hours. The session started near $1,965 before steadily grinding lower, breaking below $1,925 and settling near $1,880. Analysts emphasize that a confirmed breakout above $1,940 remains the key bullish trigger, while a loss of $1,830 would invalidate the current higher-low sequence and expose deeper supports.
