Ethereum (ETH/USDT) 4H Technical Analysis: Liquidity Sweeps, Market Structure and Key Resistance Levels

Ethereum continues to trade within a broader bearish market structure on the 4-hour timeframe. The descending channel visible on the chart reflects the persistent selling pressure and the formation of lower highs over recent weeks.

During this downward movement, two areas of potential liquidity sweeps stand out. The first occurred near the lower boundary of the descending channel, where price briefly moved below a previous low before recovering. The second developed around 2,526 USDT, where price moved above a short-term high and was followed by a strong bearish reaction.

These movements suggest that liquidity around previous highs and lows has played an important role in Ethereum's recent price action. However, a liquidity sweep alone does not confirm a trend reversal.

Following the latest decline, Ethereum reached the 2,172.79 USDT area, where buyers entered the market and initiated a recovery. Since then, price has been forming a short-term ascending support structure, although the broader bearish trend has not yet been invalidated.

Bullish Scenario

The primary level I am monitoring for a potential bullish market structure shift (MSS) is 2,390 USDT.

This area has acted as a significant resistance zone, with multiple rejections visible on the chart. A decisive 4-hour candle close above this region, followed by sustained price action, could provide an early indication that the current bearish structure is weakening.

If buyers manage to establish acceptance above 2,390 USDT, the next resistance levels to monitor would be 2,526.10 USDT and subsequently 2,578.43 USDT.

However, a breakout above a single resistance level would not automatically confirm a broader bullish trend. Further evidence, including the development of higher highs and higher lows, would be needed.

Bearish Scenario

If Ethereum fails to break above the 2,390 USDT resistance zone and encounters renewed selling pressure, the market could continue trading within its broader bearish structure.

In this scenario, the ascending support line formed after the recent low becomes particularly important.

A confirmed break below this short-term support structure could increase the likelihood of another test of the 2,172.79 USDT area.

This level represents the most recent significant low on the chart and remains a key reference point for evaluating potential buying interest.

A sustained move below 2,172.79 USDT would weaken the current recovery structure and suggest that bearish pressure remains dominant.

Market Outlook

From my perspective, Ethereum's 4-hour chart is currently showing a recovery attempt within a broader downward market structure.

The recent reaction from 2,172.79 USDT is technically relevant, but I would not consider the market bullish until stronger structural confirmation develops.

For now, 2,390 USDT remains the key level to monitor for a potential bullish market structure shift. A confirmed breakout could bring 2,526.10 and 2,578.43 USDT into focus.

On the other hand, rejection from the resistance zone and a breakdown of the ascending support structure could shift attention back towards 2,172.79 USDT.

My approach remains focused on market structure, liquidity and price reactions at critical levels rather than attempting to predict every movement in advance.

MeTrader

Güncel Battal

Website | IG

Disclaimer: This article is contributed by a Bitget trader. The views expressed are the author’s own, do not necessarily reflect those of Bitget, and should not be considered financial or investment advice. cryptocurrency trading involves significant risk, and technical scenarios may change depending on market conditions. Qualified professionals should be consulted prior to making financial decisions.