Ethereum volatility at multi-month low near $2,120

Ethereum traded near $2,120 after slipping below $2,140 last week, and volatility has fallen to a multi-month low. Traders are focused on the daily demand zone between $1,942 and $2,015, which could precede a move to $2,382 or a drop to $1,920.

On the daily chart, ETH lost the lower band of an ascending parallel channel that had held since Feb. 7 and slipped below the 0.236 Fibonacci retracement at $2,140. The Bollinger Band Width Percentile shows extreme contraction. Technical studies note similar contractions typically resolve with a marked expansion in volatility within roughly two weeks.

On the four-hour chart, ETH has traded inside a descending parallel channel since April 26 and is testing the channel midline from below at about $2,122. A clean break above that midline would open a path to roughly $2,230, near the channel’s upper boundary and short-term resistance. Volume has contracted during recent bounce attempts. A close below $2,080 would put price back in the lower half of the channel.

The four-hour Relative Strength Index is near 55, while the daily RSI sits near 40. The 0.382 Fibonacci level is at $2,382 and the 0.618 level near $2,772. Traders identify $1,920 as the next horizontal support if the demand zone fails, with the February swing low around $1,750 as a lower reference.

An analyst using the handle Crypto Candy wrote that ETH is “holding above the daily demand zone of 2k-1.9k and trying to rebound,” and tied the bullish scenario to daily closes above $1,942.

Technical studies and traders will watch the first sustained expansion in volatility and volume for guidance on direction into the third quarter.