Ethereum Faces A Critical Test At Major Resistance

Ethereum is showing signs of recovery after a strong rebound from its local bottom. The asset is now holding above a key trendline, marking an improvement over the selloff seen earlier this summer. Investors are watching closely as the price tests a supply zone between 1.88K and 1.91K dollars.

Technical challenges remain ahead for the coin. A cluster of resistance lies near the 1.95K area due to the 100 day moving average. If the price can clear this zone, it may move toward the 2K level. However, if buyers fail to hold the 1.76K support, the price could slide toward the 1.55K range.

Short term indicators suggest the rally is losing some steam on the 4 hour chart. Recent price action shows a slip below the ascending trendline that guided growth throughout July. Traders should watch whether the price stays inside the current supply zone or pulls back toward lower demand levels.

Liquidity heatmaps show a notable concentration of interest around the 1.5K mark. While this is far from current prices, it remains a point of interest for the derivatives market. Staying above current support levels is vital for bulls to maintain control in the coming sessions.