Ethereum (ETH) remains trapped inside a descending price channel on the daily chart, trading below $2,200 as Q2 enters its second week.
ETH Descending Channel
The asset has held above $1,800 since the February lows, but the recovery has lacked momentum. Both the 100-day moving average near $2,400 and the 200-day moving average around $2,900 are declining overhead, compressing the resistance ceiling.
The $2,400 zone has blocked every meaningful rally attempt since February.
On the 4-hour chart, ETH has consolidated in a broad range between roughly $2,000 and $2,400 for more than two months.
An ascending trendline from the lows provides short-term support, and the RSI sits above 50, pointing to near-term buying pressure. A clean breakout above $2,400 would mark the most constructive signal in months and could open a path toward $2,800. On the downside, a daily close below $1,800 would expose levels near $1,600 and $1,400.
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ETH Derivatives Sentiment
Funding rates tell a mixed story. After months of consistently positive readings during the 2025 bull run, the picture shifted following the February breakdown. The most extreme negative readings from that capitulation period have faded, but recent data shows smaller, inconsistent funding rates with brief dips back into negative territory.
The shrinking magnitude and intermittent red bars suggest a derivatives market that remains uncertain rather than directionally committed. Positive funding is still the dominant reading, but the market has not returned to the sustained bullish bias that characterized ETH's rally toward $5,000 last year.
ETH Price Swings in 2026
Ethereum peaked near $5,000 in Aug. 2025, then reversed sharply in early 2026 amid recession fears and large ETH sales by the Ethereum Foundation. The token dropped below $2,000 in February before stabilizing. Since then, it has traded in a choppy range between $2,000 and $2,400, with neither buyers nor sellers establishing control. The Foundation's recent decision to stake roughly 70,000 ETH — valued at approximately $143 million — rather than sell tokens for operational expenses has reduced some sell-side pressure, though it has not yet translated into a sustained price recovery.
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