Ethereum (ETH) is once more testing a critical trendline that has supported its price for nearly ten years. This level has historically served as a significant turning point in various market cycles.

As it stands, ETH is trading at around $3,000, accompanied by a 24-hour trading volume of $14.6 billion. The asset has increased by 7% over the past week, although it experienced a minor dip in the last 24 hours (according to CoinGecko data).

Ethereum Re-examines Multi-Year Support Zone

A chart posted by Merlijn shows ETH trading within a green area that has consistently acted as a support level since 2016. This zone has indicated previous cycle lows, which were then followed by significant upward moves. The price behavior in 2017 and 2020 adhered to a similar pattern: a low, a retest, and then rapid expansion.

Trading Chart Source: Merlijn The Trader/X

Remarkably, ETH is once again hovering near this critical zone and is exhibiting patterns akin to past cycles, suggesting that the retest phase could likely lead to significant breakouts. To date, the trendline remains intact since its formation.

In the meantime, technical indicators suggest a shift in short-term momentum. The daily Relative Strength Index (RSI) is at 40.76, still below the neutral line of 50, but showing recovery from previous lows. This indicates that bearish pressure is diminishing.

Additionally, the MACD has turned positive, with a recent crossover above the signal line, with a current MACD value of 34. This development follows weeks of negative momentum and indicates a build-up of early strength.

MACD Analysis Source: Tradingview

Institutional Interest in Liquidity Sweep

Merlijn also shared insights on liquidity trends showing strong buying interest between $2,750 and $2,850. ETH dropped into this bracket and rebounded sharply.

“Price dropped into a significant buying wall. Whales absorbed it silently.”

Soon after, ETH climbed through the sell-side zone near $3,200 before pulling back. The current price range of $2,950 to $3,050 indicates an ongoing quiet accumulation. Merlijn remarked: Next phase: fool the latecomers. Don’t blink. This phase commonly precedes a major directional shift.

Key Levels to Monitor

Daan Crypto Trades points out that ETH is fluctuating between $2,600 and $3,000. A breakthrough above $3,050 could aim for $3,300–$3,400, while a decline below $2,600 could lead to a re-evaluation at $2,000–$2,200.

Furthermore, analysts believe ETH could reach $9,000–$10,000 if the current setup holds true. Even though the foundations are being laid, close attention to key levels is recommended before anticipating further movement.