Ethereum Price Movement Trapped Between Resistance and Support

Ethereum's price movement has been characterized by its inability to surpass the $2,100 resistance zone. According to recent charts, sellers continue to intervene whenever the price approaches this level, causing it to remain below the major resistance area.

The daily chart from Daan Crypto Trades highlights a supply area between $2,106 and $2,166, which Ethereum has struggled to stay within. The presence of sellers in this zone keeps the $2,100 mark as a significant barrier for the cryptocurrency, making it challenging to move into a stronger recovery.

On the other hand, the $1,808 level serves as key support, with buyers successfully defending it during earlier pullbacks. Daan emphasizes that protecting this broader $1,800 zone is crucial; if Ethereum were to drop below it, the structure might weaken and lead to a more substantial decline.

The consolidation pattern observed in Ethereum's price movement resembles a bear flag on the daily chart shared by Hardy. This pattern has formed after a sharp decline earlier in the year and could act as a continuation structure rather than a reversal. However, repeated attempts to move above the upper boundary of this channel have been unsuccessful, with each approach resulting in rejection wicks.

Hardy notes that extended consolidation within the bear flag can strengthen the potential breakdown when the structure eventually breaks. Liquidity builds on both sides of the range during such periods, and when price moves quickly toward the next support zone after a breakout or breakdown, it often does so rapidly.