Ethereum Testing A Major Multi-Year Support Zone

Key $2,200 Resistance Holds Firm
• Ethereum's latest recovery attempt stalled beneath the $2,200 area.
• This level has acted as both support and resistance over the past few years and continues to reject price.

Failed Reclaim Reinforces Bearish Structure
• The recent swing high at $2,464 failed to develop into a larger trend reversal.
• Instead, price rolled over and continued the sequence of lower highs.

Multi-Year Support Now Under Pressure
• Ethereum has fallen back into a major support zone around $1,550.
• This area has repeatedly attracted buyers since 2022 and represents one of the most important levels currently on the chart.

Selling Volume Is Increasing
• Recent declines have been accompanied by stronger selling volume.
• This suggests sellers remain in control despite Ethereum reaching a historically significant support area.

Momentum Continues To Deteriorate
• RSI is drifting towards oversold territory but has not yet reached extreme levels.
• StochRSI is also moving lower, indicating bearish momentum remains dominant.

Bulls Need More Than A Bounce
• A reaction from $1,550 would not be surprising given the significance of the level.
• However, bulls ultimately need to reclaim areas such as $2,200 before any meaningful shift in the broader trend can be considered.

In Summary
Ethereum has returned to one of the most important support zones on its chart, with the $1,550 region attracting buyers on multiple occasions over the last few years. While a bounce from this area would be a logical outcome, the broader picture remains challenging for bulls. Recent rallies have failed beneath $2,200, selling volume has increased, and momentum indicators continue to weaken. Unless buyers can reclaim key resistance levels, the larger trend still favours further downside pressure despite Ethereum reaching a major area of support.