Ethereum continues to trade under pressure as sellers maintain control on the 4-hour chart. Recent price action reflects persistent downside momentum following a sharp rejection from higher levels. Market structure remains weak, while derivatives and spot flow data suggest traders remain cautious. Together, these signals frame a market still searching for stability rather than a confirmed bottom.
Ethereum continues to trade under pressure as sellers maintain control on the 4-hour chart. Recent price action reflects persistent downside momentum following a sharp rejection from higher levels. Market structure remains weak, while derivatives and spot flow data suggest traders remain cautious. Together, these signals frame a market still searching for stability rather than a confirmed bottom.
Ethereum’s four-hour trend continues to favor sellers as price holds below key dynamic resistance. Lower highs and lower lows remain intact, reinforcing a clearly defined bearish structure. Significantly, price continues to trade under the Keltner Channel mid-band, highlighting sustained downside momentum.
The aggressive sell-off from the $3,100–$3,300 region marked a decisive shift in sentiment. That move confirmed distribution rather than a temporary correction.
Additionally, the elevated ADX reading near 64 underscores trend strength, suggesting sellers remain firmly in control. Hence, short-term rebounds have failed to develop into sustained recoveries.
Immediate support rests near the $2,295–$2,260 zone, where buyers previously attempted a reaction. However, attention remains focused on the $2,160 swing low. A clean break below that level could accelerate losses. Consequently, the $2,000–$2,050 area emerges as the next major downside target.
On the upside, Ethereum faces layered resistance that continues to cap recovery attempts. The $2,450 level stands as the first meaningful hurdle and aligns with the 0.236 Fibonacci retracement. Besides that, the $2,635 region represents a prior breakdown zone and the 0.382 retracement.
Further strength would require a move toward the $2,780–$2,800 area, which coincides with structural resistance and the 0.5 retracement. Moreover, trend invalidation remains unlikely without a decisive reclaim above $2,930. That level aligns with the 0.618 retracement and marks a broader trend reversal threshold.
Derivatives data reveals a completed leverage flush following the late-2025 rally. Open interest surged aggressively during the previous advance, reflecting crowded positioning and speculative excess. However, the sharp contraction into early February indicates widespread deleveraging. Consequently, liquidation risk appears lower in the near term.
Spot flow data tells a similar story of caution. Ethereum experienced extended net outflows for most of the observed period, signaling consistent distribution. Although outflows have moderated recently, inflows remain shallow. Additionally, recent positive netflows suggest early stabilization rather than firm accumulation.
Key levels remain clearly defined as Ethereum trades within a firm bearish structure on the 4H chart.
Upside levels include $2,450 as the first reaction zone, followed by $2,635 and $2,780–$2,800 as stronger resistance hurdles. A sustained breakout above this cluster could open room toward $2,930, which remains the key trend-invalidation level.
On the downside, $2,295–$2,260 acts as immediate support, while $2,160 stands as the critical swing low. A breakdown below $2,160 risks accelerating losses toward the $2,000–$2,050 psychological demand zone.
The technical picture suggests ETH remains in a trend-driven phase rather than consolidation, with strong momentum still favoring sellers.
Ethereum’s near-term direction depends on whether buyers can defend the $2,260–$2,160 range and force a reclaim above $2,450. Stronger inflows and expanding open interest would support stabilization and a recovery attempt.
However, failure to hold $2,160 would likely expose ETH to deeper downside toward $2,000. For now, Ethereum remains at a pivotal inflection zone, with volatility expected to stay elevated until a clear breakout or breakdown confirms the next leg.
