Ethereum has recently climbed into the $3,000 range, only to face a swift halt as the market reacted to a dense liquidity area amidst a prevailing downtrend.
Both technical analyses and liquidation data reveal that ETH is in a corrective period, with key support levels now under scrutiny as the market nears a critical decision phase.
Technical Analysis
The Daily Chart
Currently, Ethereum is trading beneath both the 100-day and 200-day moving averages, which confirms a medium-term bearish pattern. The drop from $3,200 initiated a sustained correction that has led the price down to the $2,630–$2,680 range, the last significant high-timeframe support before broader accumulation.
The latest effort to regain the descending trendline on the daily chart did not succeed, reinforcing the bearish sentiment. Until Ethereum can surpass the $3,200–$3,350 zone and establish a structurally higher high, upward movements into the mid-range are likely to face supply absorption rather than continuation.
If daily support fails, expect the $2,110–$2,200 macro demand area to emerge as the next major target, representing the high-timeframe accumulation point from which the previous multi-month rally began.
Daily Chart
The 4-Hour Chart
Ethereum faced a sharp rejection from the $3,030–$3,080 supply zone, where the price encountered a combination of liquidity, a bearish order block, and a downtrend that acted as dynamic resistance. This subsequent sharp sell-off confirms that sellers continue to exert pressure during rallies, upholding the prevailing downtrend in place since early November.
The short-term structure indicates a slight deviation. Ethereum appeared to enter a micro ascending channel but failed to achieve a breakout, forming a swing failure that led to a rapid decline below the trendline. This behavior suggests that buyers are primarily reactive instead of driving market initiatives.
A liquidity gap exists between $2,750 and $2,800, which serves as the next immediate downside target if support at $2,820 fails. Below this, the $2,630–$2,680 zone remains a crucial demand area where stronger investors previously absorbed selling pressure. To change momentum towards $3,450–$3,550, Ethereum must reclaim the $3,030–$3,080 imbalance and break above the downward trendline.
4-Hour Chart
Sentiment Analysis
Recent liquidation metrics reveal significant leverage concentrations between $3,200 and $3,600, showing that many long positions are still getting squeezed during corrective waves. As prices approach these levels, ongoing liquidations produce heavy selling pressure, which hinders sustained upward movement.
The leverage profile is top-heavy, consistent with the technical rejections observed. Each attempt to rise above $3,000 has met dense liquidation bands, leading to quick reversals.
Conversely, below the current price level, there is minimal liquidation density until the $2,400–$2,500 range. This lack of support liquidity hints that if the $2,630–$2,680 point breaks, it could lead to a rapid decline toward the larger macro demand area.
Overall, current on-chain positioning indicates a market controlled by sellers, with poorly placed long leverage reinforcing the downward pressure, while more substantial buying liquidity remains significantly lower.
