Ethereum remains in a corrective phase, with recent price action showing compression rather than expansion. Volatility has contracted, and the market is currently rotating within clearly defined technical boundaries. On the daily timeframe, ETH is trading inside a well-defined range. The upper boundary of this range is capped by a long-respected descending trendline that continues to act as dynamic resistance.
Each recent attempt to push higher has been rejected near this trendline, confirming that sellers remain active on rallies rather than the price transitioning into a breakout phase. On the downside, the asset is holding above a major static support zone around the $2.5K area. This level has repeatedly absorbed sell pressure in recent sessions, preventing deeper continuation to the downside. As a result, Ethereum is effectively trapped between descending trendline resistance and horizontal demand, forming a compression structure that reflects indecision rather than trend continuation.
As long as the price remains below the descending trendline and above the $2.5K support, the daily structure favors range-bound conditions. A daily close outside of this range will be required to resolve the current consolidation and define the next directional leg. On the 4-hour timeframe, recent price action has clarified short-term market intent. Ethereum previously formed a flag structure following a reaction off local lows, but the breakout attempt failed to hold.
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