Bitcoin and Ethereum witnessed a strong recovery after President Donald Trump reportedly pushed the Federal Reserve to provide crypto firms with direct access to master accounts. While Bitcoin extended its gains toward new local highs, the Ethereum price failed to break decisively above the crucial $2,157 resistance zone, causing the rally to lose momentum and enter a tight consolidation phase.
At the same time, social sentiment surrounding Ethereum has declined significantly over the past few weeks, signaling weakening retail participation despite the ongoing recovery. However, ETH continues to hold firmly above the newly established $2,000 support zone, suggesting bulls are still defending the broader bullish structure.
The question now remains whether the ETH price can regain momentum to trigger a breakout above resistance or if declining market participation will weaken the rally.
Ethereum Faces Major Resistance While Bulls Defend $2,000 Support
Ethereum continues to trade within a tight consolidation range after facing repeated rejections from the major supply zone between $2,300 and $2,420. The latest pullback pushed the price back toward the ascending trendline support, which has been acting as the backbone of the ongoing recovery since February. The chart suggests ETH is currently trapped between rising support and a heavy overhead resistance zone, indicating growing price compression.
At the same time, the CMF indicator remains below the neutral zone, signaling weakening capital inflows, indicating the buying pressure has slowed. Additionally, the price range around $2,300 has become a strong ‘sell zone’ as it shows a significant increase in supply. This may have kept the price restricted below the ascending trend line until it reclaims levels above the range; a bearish possibility may prevail.
Ethereum Network Activity and Sentiment Continue to Weaken
Ethereum’s on-chain activity continues to show signs of weakening despite the price holding above the crucial $2,000 support zone. The latest data from Santiment reveals that both daily active addresses and network growth have dropped sharply over the past few months, reflecting a notable slowdown in user participation across the ecosystem. The decline in network growth suggests fewer new addresses are interacting with Ethereum, while active address activity has also continued to trend lower.
At the same time, exchange flow data indicates large spikes in both inflows and outflows. This highlights rising uncertainty among market participants rather than aggressive long-term accumulation. Social sentiment surrounding Ethereum has also weakened considerably in recent weeks. Positive sentiment has steadily declined, while the positive-to-negative sentiment ratio has dropped toward local lows.
The combination of weakening network activity, softer sentiment, and slowing capital inflows suggests Ethereum’s current recovery remains fragile. Unless the network metrics begin to recover alongside price action, ETH may continue struggling below the major resistance zone near $2,300 to $2,400.
The Bottom Line
Ethereum price continues to defend the crucial $2,000 support zone despite facing repeated rejections from the major resistance range between $2,300 and $2,400. The tightening price structure suggests a decisive move could be approaching as bullish momentum and bearish pressure continue to collide near key technical levels.
A breakout above $2,300 could help Ethereum regain bullish momentum and target the resistance zone around $2,420 and beyond. Conversely, a breakdown below the ascending support trendline may increase bearish pressure and expose ETH to a deeper correction toward the lower demand zones near $2,000 and $1,920.
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