Ethereum is currently navigating a critical technical squeeze, as traders closely watch its movements between a significant resistance level and a long-standing support line. This situation presents a crucial test for the cryptocurrency, determining whether it will break through the upper resistance or bounce back from the lower support.
The Ethereum trendline is set for its fourth test after experiencing three previous rejections. Over the last two years, Ethereum has encountered a persistent ascending trendline that has thwarted upward movements since 2024. The resistance line, drawn from earlier swing highs, has consistently capped price advances. Despite these setbacks, the repeated tests have kept the price close to this ceiling, creating a compression pattern as the distance narrows between the resistance and higher lows.
According to market analyst Bitsensus, the initial rejection occurred in early 2024 when prices hovered around the mid-$3,000 mark. Following that, Ethereum attempted to rally towards the same resistance again, but sellers remained vigilant. A third attempt in 2025 brought prices back to this trendline, leading to yet another pullback. Nonetheless, the overall structure indicates a series of higher troughs following each correction, which further highlights the potential for a breakout.
In technical analysis, repeated retests of resistance levels can diminish selling pressure, as the supply at these levels may gradually be absorbed. If momentum builds during a fourth approach, this trendline could undergo a decisive breakout. Conversely, resistance will stay in play until there is a solid price closure above this line. Past rallies have shown a tendency to stall shortly after reaching this level, indicating that sellers continue to monitor this critical zone.
The implications of this next move are significant. A confirmed breakout could alter the multi-year trend pattern and pave the way for higher historical supply zones. On the other hand, another rejection would prolong the current range and delay any structural changes.
Currently, Ethereum is trading within a tightening formation beneath the ascending trendline, with market participants eagerly anticipating whether the cumulative pressure will finally overcome a resistance that has persisted for years.
In addition to facing resistance, Ethereum is also testing a long-term support trendline, as highlighted by analyst James Easton. He continues to view the sub-$2,000 level as an area for accumulation. Easton noted that he is waiting for what he refers to as “God candles,” which indicate a sharp upward movement rather than a gradual recovery.
The chart shared by Easton illustrates that Ethereum is transitioning into a slower uptrend following the downturn of 2022. The price action appears to be compressing towards a rising support line that has consistently guided higher lows. This support level is positioned beneath the latest consolidation range and aligns with past rebound points on the chart.
A red momentum line plotted beneath the price has also trended lower into early 2026, nearing a flat baseline. Historically, this indicator has spiked during significant rallies, then rolled over during pullbacks, suggesting that momentum has cooled, even while the longer-term trendline remains intact.
Easton”s analysis focuses on a straightforward threshold, with the sub-$2,000 level serving as his reference point. However, the ongoing technical question remains: can Ethereum rebound from this trendline support and regain momentum, or will further weakness necessitate a deeper reset before any sustained upward movement?
