Ethereum is in an interesting situation right now. It broke out of the $1,700 bottom with a 20% recovery, but the larger chart still shows that we are within a well-defined downward channel. It seems more like a short-term relief than a true reversal, you know how it is. The price is testing that important resistance zone around $2,300-$2,400, but as long as the 100- and 200-day moving averages remain declining above, the trend continues downward. On the 4-hour chart, you can see it better: ETH has recovered strongly from $1,800 and is now pressing that recent prominent test near $2,150. The RSI has exited oversold territory, momentum has improved, but the market is effectively stuck between $1,750-$1,800 as support and $2,150 as resistance. If it manages to break through and consolidate above that prominent test, then there’s room for $2,300-$2,400. If it fails here and drops back below $2,000, it’s a sign that the strength is fading. What I found most interesting is looking at on-chain data: the amount of ETH on centralized exchanges has been falling for months and is near multi-year lows. Even with the price weakening, there’s a structural movement of ETH leaving exchanges, whether for staking, self-management, or long-term strategy. This reduces the immediate supply available for sale, which generally suggests a more accumulation environment than distribution. It’s not a guarantee of an imminent reversal, but it’s an interesting signal. When this downtrend exhausts, this reduced supply could significantly amplify the impact of renewed demand on the price. So the prominent test at $2,150 is critical now; we need to see if it can break through or if it will test recent lows again.