ETHUSD Analysis: Consolidation Looms After Major Rally, Key Levels to Watch

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the ETHUSD for July 22, 2025.

Technical Analysis of ETHUSD

ETHUSD Daily Chart Insights

• Stochastic Oscillator: The indicator has moved well into overbought levels above 80, validating the ongoing upward momentum while simultaneously indicating short-term market extension. Although assets can sustain overbought conditions throughout robust trending periods, this positioning increases the likelihood of upcoming consolidation or retracement activity.
• Key support area: The area around 3700-3800, which corresponds to January’s previous peak, is expected to serve as the initial significant support level following the recent breakout. The 2420-2630 range constitutes a crucial support zone, marking the May-June consolidation period and aligning with key longer-term moving averages (black and green lines). Any decline reaching this zone would represent a substantial challenge to the emerging upward trend.

ETHUSD 2-hour Chart Analysis

• Bullish with Short-Term Correction: The price has maintained a persistent upward trajectory, characterized by successive peaks and troughs at elevated levels. Nevertheless, current market behavior suggests diminishing short-term momentum and the onset of either a corrective period or sideways consolidation. While the overarching outlook stays bullish, near-term prudence is advisable.
• Breakout scenarios: The 3820 – 3840 area represents the most pivotal resistance zone, coinciding with the latest high. A definitive breach and sustained close beyond this level would confirm uptrend continuation and negate the present corrective scenario. The purple moving average, positioned near 3760, could potentially serve as modest near-term resistance during any recovery attempts.

ETHUSD Pivot Indicator

• The near-term perspective remains balanced as the asset trades within established boundaries during this consolidation phase. Yet the broader context carries bearish undertones over the immediate time-frame, given that this sideways movement emerged after a steep retreat from recent peaks. Market participants appear uncertain, with the subsequent major directional move likely hinging on whether price breaks decisively from the current trading range.
• Bearish Breakdown: The 3720 level marks both the range floor and the neckline of the emerging Head and Shoulders formation, representing the key support zone requiring close monitoring. Should the 3720 level fail, the next downside target becomes the July 19th swing low near 3680.
• Bullish Breakout: The latest peak at 3844 represents key resistance. A decisive move beyond this level would negate the bearish formation and confirm robust uptrend resumption.

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.