Ethereum is currently trading in a tightening downtrend as sellers cap rebounds beneath a descending resistance line, with a break of nearby support likely to decide the next major move. The market has shown persistent difficulty reclaiming previous price levels, as recent rebounds encounter selling pressure rather than sustained buying interest, signaling continued seller control. The focal point for traders remains a potential bulls-eye breakout as the descending resistance tightens, prompting questions about whether a break above resistance or a breakdown below support will define the near-term trajectory.
Price action has remained within a downward channel after breaking from earlier consolidation zones, with multiple attempts to rally stalling beneath the descending resistance line. If Ethereum can reclaim and hold above the broken trendline, the bias could shift toward a broader relief rally as seller control appears to fade. However, a loss of support would likely accelerate bearish price action, reinforcing the compression as distribution rather than stabilization. Conversely, a breakout above the descending resistance could signal fading seller pressure and a potential shift toward accumulation.
In the near term, rallies are likely to be corrective as long as Ethereum remains below the descending resistance level, with broken-trendline resistance and near-term support shaping the path forward. Volume showed increased activity during sharp moves but failed to sustain momentum, underscoring a pattern of reactive trading rather than decisive directional positioning. The upcoming move will hinge on whether price can sustain above the resistance or give way to renewed selling pressure, defining the next leg for Ethereum.
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