Ethereum’s price has continued its decline, trading within a significant multi-month demand block. The market faces a decision point, as it approaches either a possible short-term rebound or further slip into lower demand ranges.

Technical Insights

Daily Overview
Ethereum has seen a pronounced drop from the resistance zone of $3.5K to $3.6K, falling below both the 100-day and 200-day moving averages. This decline positions it squarely within the $2.7K to $2.85K demand zone, which previously served as a springboard for growth back in July.

The daily chart reflects a bearish market structure characterized by consistent lower highs and lower lows. The ongoing descending channel, coupled with a failed attempt to retest the 200-day MA, suggests that sellers maintain dominance. Should the price break below the $2.7K area, the next critical level awaits between $2.45K and $2.55K, susceptible to further selling pressure.

Chart Visualization

ETH Daily Chart

Four-Hour Chart

The short-term analysis emphasizes a prevailing downtrend, with Ethereum respecting a descending trendline since breaking down from $4.2K. Each interaction with this trendline has triggered fresh selling pressure. Currently, ETH finds itself at the lower boundary of the descending channel, nestled within the $2.7K demand block.

Liquidity fluctuations are evident on both sides, hinting at potential market volatility. If buyers successfully defend this low point, an upward target might be reached in the $3.05K to $3.15K range.

ETH 4H Chart

Onchain Metrics

The liquidation heatmap shows substantial liquidation clusters above the current price, particularly in the $3.1K-$3.6K range, where numerous short positions have accumulated. When prices penetrate deep liquidity voids, markets often overshoot downward before experiencing a corrective surge as liquidity overhead draws in market participants.

Onchain Analysis

Analysis indicates that Ethereum’s resilience will hinge on the demand block support. A temporary fall lower cannot be dismissed, but historically, it often precedes robust recovery phases as oversold conditions stabilize.