Following a severe sell-off toward the demand level at $1.8K, Ethereum has managed to stabilize and initiate a corrective recovery. Nevertheless, this rebound exhibits weak momentum and unfolds within a larger bearish framework. The current price activity suggests a potential consolidation between a clear demand zone beneath and a persistent supply zone overhead.

Ethereum Price Review: Daily Chart

On the daily chart, ETH continues to navigate within a descending channel, trading below both the 100-day and 200-day moving averages, which are presently displaying a downward slope and acting as dynamic resistance. The recent drop below the significant swing low around $2.4K hastened the sell-off, confirming the continuation of bearish trends and prompting a shift toward the $1.8K demand level.

The recovery from this important zone indicates that buyers are effectively defending this essential historical support, which previously functioned as an accumulation area. Currently, the price hovers around $2K, still falling short of overcoming the internal resistance near $2.2K.

As long as Ethereum trades within the $1.8K-$2.2K range, the market is likely to consolidate. A daily close beneath $1.8K would expose the next liquidity target at around $1.6K, while regaining $2.2K could lead to a bullish trend towards the $2.6K supply zone.

ETH Daily Chart

4-Hour ETH/USDT Chart

Diving into the 4-hour chart, the price movement illustrates a compressive structure following a drastic decline. Ethereum reached a local bottom near $1.8K and subsequently formed a higher low, establishing a brief ascending trendline amidst the overarching downward trend. Concurrently, a descending resistance line from the recent high consistently constrains price movements, resulting in a narrowing range.

Immediate supply is located around $2.2K, where a previous breakdown took place, while the nearest demand remains at $1.8K. As the price hovers near $1,960, Ethereum appears to be consolidating between these two zones. A breakout above $2.2K on the 4-hour chart would indicate a short-term bullish continuation towards $2.4K, whereas a fall below $1.8K is likely to invalidate the consolidation scenario and revive the prevailing bearish trend.

Sentiment Overview

The ETH liquidation heatmap from the past six months supplies vital validation of the bearish technical framework. A considerable accumulation of liquidity has gathered around and just below the $2K mark, which recently drew significant price action. The steep sell-off into this area confirms that momentum was actively chasing downside liquidity, resulting in a substantial flush of users holding leveraged long positions.

Despite this liquidation phase, the heatmap still unveils residual liquidity pockets extending slightly below the current price, suggesting that the market has not fully met its downside targets yet. These remaining clusters continue to influence price dynamics, particularly if spot demand remains tepid and derivative positioning rebuilds on the long side too swiftly.

Overall, while liquidations around the $2K zone suggest that substantial forced selling has already transpired, this alleviates immediate liquidation pressure. It explains the short-term stabilization seen post-drop. However, from an on-chain analysis standpoint, this behavior supports consolidation or corrective rebounds, rather than confirming a trend reversal unless liquidity interest decisively re-establishes itself above present levels.

In conclusion, on-chain data corroborates the technical outlook: Ethereum persists in a bearish liquidity-driven landscape, with downside risks active as long as the price fails to reclaim essential supply zones and engage sustained demand.