Ethereum is showing fresh signs of strength as price breaks key resistance and futures traders add new long positions. Still, analysts say the rebound may only be a short term recovery, with lower lows still possible later in 2026. Ethereum Breakout Holds, but Analyst Warns of New Lows Ethereum may be trying to recover, but one analyst said the move still does not confirm a broader trend reversal. In a chart shared on X, Ted Pillows said ETH broke above the $2,150 to $2,200 resistance zone. The chart shows Ethereum trading near $2,257 against Tether on the daily timeframe. It also marks $2,400.73 and $2,624.07 as the next resistance levels if price holds above the breakout area. Ethereum Breaks Above Key Resistance Zone. Source: Ted Pillows on X According to the post, Ethereum needs to stay above $2,200 to keep the near term structure intact. If that happens, the asset could move toward last month’s high. The chart also points to a possible path higher first toward the $2,400 region and then toward the $2,624 area. Still, the analyst warned against reading the move as the start of a new bull run. While ETH moved above the highlighted resistance band, the post said new lows could still come in the second or third quarter of 2026. That means the current rebound may only be a temporary recovery inside a larger weak trend. The chart supports that cautious view. ETH remains far below the earlier highs shown near the top of the range. In addition, the image highlights a lower support area around the $1,750 to $1,800 zone, suggesting that downside risk remains if the breakout fails. For now, the $2,200 level stands out as the key line to watch. If Ethereum stays above it, bulls may try to push toward $2,400 and then $2,624. However, if ETH slips back below that level, the recovery setup could weaken and bring lower support zones back into focus. Ethereum Futures Inflows Rise as Net Longs and OI Climb Ethereum futures market activity is picking up again as new capital appears to be moving into long positions, according to a post by X user CW. Ethereum Futures Open Interest and Net Long Positions Rise. Source: TradingView,CW on X The post said fund inflows into the ETH futures market are rising again. At the same time, net long positions and open interest are both increasing. That combination usually shows that more traders are entering the market and that many of them are positioning for further upside. In derivatives markets, open interest tracks the total number of active futures contracts. When open interest rises alongside net longs, it often means traders are adding fresh bullish exposure instead of only closing older positions. Therefore, the move can point to growing confidence in Ethereum’s near term price direction. Still, higher open interest does not confirm that prices will keep rising. It only shows that more leveraged positions are building. If Ethereum fails to hold key support levels, those positions can unwind quickly and add pressure to the downside. Taken together, the post suggests that sentiment in the ETH futures market has improved. More money is entering, and traders are leaning long. However, whether that turns into a sustained rally will depend on spot price strength and whether Ethereum can hold above nearby support levels.
