Ethereum’s recovery attempt has weakened after repeated rejections beneath the $2,300–$2,400 resistance zone. The breakdown of an ascending wedge pattern on lower timeframes, combined with persistently bearish derivatives sentiment, suggests that further downside toward the $1,800–$1,850 demand zone could materialize if current support levels fail.

Daily Chart Shows Fragile Structure Below Key Moving Averages

On the daily timeframe, ETH has experienced multiple unsuccessful attempts to reclaim the $2,300–$2,400 supply zone, where sellers continue to defend aggressively. The 50-day and 200-day moving averages have converged near $2,360, creating a dense resistance cluster that has capped recovery efforts throughout May.

The latest decline has pushed the price toward the 100-day moving average, which now serves as the next dynamic support level. A confirmed breakdown below this indicator could trigger an accelerated move toward the $1,800–$1,850 demand zone. The broader structure remains corrective, with the descending 200-day MA near $2,600 reinforcing the fragility of the higher timeframe trend.

Ethereum currently trades near $2,254, with the 14-day RSI at approximately 29.6—a reading that signals oversold conditions but has not yet produced a sustained reversal in recent sessions.

Wedge Breakdown Invalidates Short-Term Recovery Structure

On the 4-hour chart, ETH broke below the lower boundary of its ascending wedge formation, delivering one of the clearest bearish signals observed in recent weeks. The breakdown pushed the price into the $2,180–$2,220 demand region, where the immediate reaction could determine the next directional move.

If buyers defend this zone, a temporary rebound toward the broken wedge boundary near $2,300 remains possible. However, failure to hold $2,200 support would expose the next major demand zone around $2,050–$2,100. The wedge breakdown has invalidated much of the prior bullish recovery structure, indicating that sellers have regained control over short-term momentum.

Derivatives Data Confirms Seller Dominance

The Taker Buy Sell Ratio on Binance, measured using a 30-day moving average, has fallen to 0.97 (its lowest reading since November 2025), according to CryptoQuant data analyzed by CryptoOnchain. This metric tracks the balance between aggressive buyers and sellers executing market orders on perpetual contracts, with readings below 1.00 indicating that sell-side activity is outpacing buy-side demand.

The sustained weakness in this ratio reflects what CryptoOnchain described as “a bigger sentiment shift among Ethereum futures traders over the past month, rather than being a temporary reaction to price action.” Although minor rebounds in the metric have appeared, buyers have repeatedly failed to regain sustained control, increasing the probability of continued downside pressure in the coming weeks.

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