ETH: Battle for Key Resistance Levels After Sharp Rebound

Currently, Ether is showing a rebound after a deep oversold phase, returning the price to levels where active market resistance begins. This recovery impulse provides the first hint of weakening seller pressure at critical levels, but a decisive testing phase lies ahead. The price must overcome significant obstacles to confirm the sustainability of the rebound.

Recovery from the bottom: signs of pressure reversal

After falling to a low around $2,156, the price recovery demonstrates a classic reaction to extreme oversold levels. The current ETH price is at $1.98K (24-hour change +1.73%), indicating ongoing recovery, albeit with volatility. This 4% rise from the bottom confirms an initial rebound, but the true test of buyer readiness is still ahead.

Main resistance: a cluster of moving averages

The key barrier for recovery is in the $2,330 zone, where EMA 7, 25, and 99 form a dense cluster. This is not just a technical mark — it’s an area where the opinions of numerous traders across different timeframes converge, creating strong resistance. Breaking through this level will be the first confirmation that the rebound is not merely a technical correction at a demand shift but the start of a more significant upward movement.

Indicator situation: RSI exits the extreme

The RSI oscillator, which was in the deeply oversold zone, has already recovered to a neutral area. This indicates that the extreme imbalance between supply and demand is beginning to balance out. However, exiting oversold territory is only the first step. The real test occurs when approaching resistance levels.

Plan for active traders: entry and target levels

An upward scenario trading hypothesis can be based on the following parameters:

Entry conditions: Confirmed breakout and close above the cluster of moving averages ($2,330), preferably on increasing trading volume. Possible entry range: $2,325 - $2,335.

Price targets:

• TP1 — $2,395 (testing the nearest local maximum)
• TP2 — $2,460 (next key resistance according to EMA levels)

Protection level: Stop-loss set below $2,280, at the lower part of the last consolidation zone. A break below this level would revert the scenario to a bottom-testing idea and could indicate a failure of the current rebound.

Nature of reversals: a multi-stage process

History shows that deep declines rarely reverse with a single impulse. Usually, they go through three phases: bottom localization, technical rebound from the extreme, and then a struggle to overcome the first and most significant resistance levels. Currently, ETH is at the beginning of the third phase — at that critical point where the sincerity of the recovery movement is confirmed or refuted.

Market participants’ question: which signal do you find more convincing for considering a long position — a decisive breakout of the $2,330 level on increasing volume or a gradual formation of a higher minimum above $2,290?