Ethereum Slips Below Ascending Channel as Futures Sellers Take Control

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Ethereum Slips Below Ascending Channel as Futures Sellers Take Control
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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Ethereum's rebound failed and sellers returned, leaving the price near $2.37K and below its ascending channel. Futures taker activity has also shifted toward sell dominance, which keeps the bearish scenario favored unless buyers reclaim nearby resistance.

Ethereum trades near $2.37K after renewed selling ended its rebound attempt. The price now sits below its broader ascending channel, and the bearish continuation scenario remains favored unless buyers reclaim nearby resistance.

Daily chart shows a channel breakdown

On the daily timeframe, Ethereum broke beneath the ascending channel's lower boundary after its latest recovery stalled inside the $2.44K–$2.52K supply zone. The bearish candles that followed suggest sellers used the rebound to reduce exposure.

ETH now defends the $2.32K–$2.36K demand zone. A sustained close beneath it would strengthen the breakdown scenario and expose the upper boundary of the bullish imbalance, or BISI, around $2.22K, which extends toward $1.92K.

Holding nearby support could produce another relief bounce. However, ETH would need to reclaim the broken channel boundary and establish acceptance above the $2.44K–$2.52K supply zone to meaningfully weaken the bearish outlook.

Four-hour chart keeps sellers in control

The 4-hour chart shows a sequence of lower highs, with the latest rebound rejected from the $2.47K–$2.5K supply zone. Ethereum has since fallen back toward the $2.32K–$2.36K demand region.

Repeated visits to this support have produced sharp reactions, but those rebounds have failed to establish sustained upside progress. A decisive break below $2.32K would confirm a fresh lower low and raise the likelihood of an extension toward the daily imbalance near $2.22K.

For buyers, recovering the $2.4K–$2.42K area would be an initial improvement. Yet the more important barrier remains $2.47K–$2.5K, and a second supply zone at $2.54K–$2.58K could limit further gains.

Futures taker flow turns to sell dominance

The Ethereum Futures Taker CVD chart shifted from neutral to taker-sell dominant over a rolling 90-day window, with red readings accompanying Ethereum's retreat toward $2.4K. This suggests sell-initiated futures volume has gained the upper hand.

Persistent sell dominance would support the risk of a breakdown through the $2.32K–$2.36K demand zone. A shift back toward neutral or buy-dominant conditions, alongside a recovery through nearby supply, would show selling pressure easing.

Source: CryptoPotato

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