In recent days, Ethereum has shown sideways movement with no significant price changes, reflecting a balance between supply and demand. Analyzing the current situation will show that a breakout is expected from one side.
Technical Analysis on the Daily Chart
On the daily chart, ETH remains confined within its ascending channel, though momentum has stalled in the upper half of the structure. Unable to extend towards the $5K resistance zone, the asset has settled into a narrow consolidation around the $4.2K mid-range support.
This zone has acted as a holding ground, but the absence of fresh buying pressure underscores a lack of bullish conviction. At the same time, sellers have failed to mount meaningful downside pressure, leaving the market in a waiting phase. A decisive move is likely to emerge only when new order flow shifts the balance of power.
4-Hour Chart Analysis
The 4-hour chart makes the indecision even more apparent. ETH is compressed within a descending wedge, trading between $4.2K and $4.4K. This tight consolidation reflects the muted state of the market, where both supply and demand appear exhausted in the short term.
A breakout from this wedge will dictate the next leg of price action. A push above resistance could drive momentum toward $4.6K–$4.8K, while a breakdown risks a retest of deeper liquidity pockets around $4K and below. Until such a breakout occurs, Ethereum remains trapped, with participants awaiting a catalyst to inject new orders into the market.
Ethereum Sentiment Analysis
Funding rates across exchanges provide an important context when comparing Ethereum's last three major highs. During the first peak in early 2024, funding rates spiked above 0.08, reflecting excessive long positioning and speculative demand. The asset soon topped out as overheated leverage unwound.
At the second peak in late 2024, ETH revisited similar price levels, but funding rates were significantly lower. This signaled reduced speculative participation, showing a less overheated market yet still lacking strong, sustained momentum.
Now, at the latest peak in 2025, Ethereum reached a higher high near $4.9K, while funding rates remained relatively muted at moderate levels. This divergence highlights a shift: ETH is advancing without the aggressive long positioning that fueled earlier rallies.
The takeaway is twofold. On one hand, the market appears more spot-driven and structurally healthier, as price is not being pushed by excessive leverage. On the other hand, the absence of aggressive demand also limits breakout momentum, leaving ETH in a slower-moving environment where new order flow will be essential for continuation.
In summary, Ethereum demonstrates higher highs against declining funding rates, suggesting a steadier market less vulnerable to sudden liquidation cascades, but equally one that requires stronger conviction from buyers to sustain the next leg higher.
