- Ethereum continues to hold the crucial $1,500 support zone, raising the possibility of a double-bottom reversal.
- Improving momentum and stronger buyer activity are increasing the chances of a short-term relief rally.
- Options traders remain heavily positioned for higher ETH prices despite the broader bearish trend.
Ethereum is still trading inside a broader downtrend, there’s no getting around that. But beneath the surface, a few technical signals are beginning to shift.
After weeks of heavy selling pressure, ETH has now defended the $1,500 support region on two separate occasions. That alone doesn’t confirm a trend reversal, yet it does suggest sellers may be running out of steam. If buyers can keep building momentum, Ethereum could be setting the stage for a meaningful relief rally.
For now though, several key resistance levels still stand in the way.
Ethereum Finds Stability at a Critical Support Zone
On the daily chart, Ethereum remains trapped inside the same descending channel that has controlled price action for months. The broader trend is still clearly bearish, with both the 100-day and 200-day moving averages continuing to slope lower above current prices.
Those major moving averages are sitting between roughly $2,000 and $2,200, creating a significant resistance zone that bulls will eventually need to overcome.
Despite that bearish backdrop, the recent reaction around $1,500 has caught traders’ attention.
ETH has now tested this support twice, with buyers stepping in both times to prevent a deeper breakdown. That repeated defense raises the possibility of a developing double-bottom pattern, although confirmation hasn’t arrived just yet.
Momentum is also beginning to improve.
The Relative Strength Index (RSI), which recently hovered near oversold conditions, has recovered steadily and is pushing back toward its midpoint. It isn’t flashing an overbought signal either, leaving room for additional upside if buying pressure continues to build.
The next major hurdle sits near $1,800.
A decisive move above that level would strengthen the double-bottom setup and shift attention toward the larger resistance cluster between $2,000 and $2,200, where long-term moving averages converge.
On the flip side, losing the $1,500 support would dramatically weaken the outlook. Such a move would invalidate the potential reversal pattern and likely trigger another leg lower within Ethereum’s broader bearish trend.
Short-Term Momentum Continues Improving
The four-hour chart paints a more encouraging picture for short-term traders.
Liquidity was swept beneath the recent lows around $1,500 before buyers stepped back into the market, preventing Ethereum from printing a fresh lower low. Since then, price has steadily recovered and is now approaching its next important resistance area.
That zone sits around $1,700, where a notable fair value gap remains from the previous bearish move.
This imbalance could attract renewed selling pressure, making it one of the most important levels to watch over the coming sessions.
If ETH can break cleanly above $1,700, the next upside target comes into view around $1,850.
Momentum indicators are supporting that possibility.
The RSI on the lower timeframe has continued making higher lows while climbing toward bullish territory, suggesting buyers have gradually regained some control after the recent rebound.
Still, traders should remain cautious.
Unless Ethereum begins printing higher highs and successfully clears nearby resistance, this rally could simply become another temporary bounce inside a much larger downtrend.
Options Market Still Favors Long-Term Upside
While spot prices remain under pressure, Ethereum’s derivatives market is telling a slightly different story.
Current options positioning shows the largest concentration of open interest sitting around the December 2026 expiration, where call options significantly outnumber puts. Similar positioning can also be seen across several major expiries later this year, including July and September.
That imbalance suggests many institutional and professional traders continue betting on higher Ethereum prices over the medium and long term despite recent weakness.
Large concentrations of open interest can also become catalysts for increased volatility as expiration dates draw closer, making those periods worth watching.
Of course, options data alone doesn’t guarantee Ethereum will rally.
But when combined with improving momentum, a well-defended support zone, and the possibility of a double-bottom formation, it paints a picture of a market where longer-term optimism hasn’t disappeared.
If Ethereum can finally push through the resistance cluster ahead, those bullish derivatives positions could help reinforce positive sentiment and provide additional fuel for a stronger recovery.
