The current analysis of Ethereum's market situation shows bearish tendencies and price consolidation. This article reviews significant support and resistance levels and the market's overall behavior.
Technical Analysis on the Daily Chart
Ethereum remains in a consolidation phase, trading just under the critical resistance zone at $2.8K and the 200-day moving average. The price action within this range has generally lacked strength, while forming an ascending flag pattern. Clear resistance is located at $2.8K and support near the $2.4K demand zone.
A clear bearish divergence has developed between the price and the RSI, signaling weakening bullish momentum and a growing presence of sellers. This divergence suggests that the current rally may be losing steam, potentially leading to a deeper correction.
Four-Hour Chart and Short-term Outlook
On lower timeframes, Ethereum has repeatedly been rejected from the flag's upper boundary around $2.8K, proving it to be a strong resistance zone. These rejections led to a sharp retracement toward the lower edge of the flag. After reaching support near $2.4K, Ethereum rebounded slightly, retracing back into the Fibonacci correction zone between $2.6K and $2.7K.
This retracement likely represents a pause before another bearish push. With selling pressure mounting, another move toward the $2.4K level is anticipated. If Ethereum fails to hold this crucial support and breaks below the flag’s lower boundary, it could confirm the beginning of a broader corrective phase.
On-chain Analysis and Liquidity
The current market behavior of Ethereum is also clarified through the analysis of liquidations on Binance. Following a sharp upward push, ETH touched the $2.8K level, a zone packed with short liquidation levels. This move triggered a wave of forced short closures, fueling the rally.
Historically, during recovery phases or when bullish sentiment strengthens, markets often seek out these high-liquidity areas. Currently, Ethereum has pulled back and is stabilizing above the $2.4K support zone. However, the heatmap shows a notable liquidation cluster below this level, suggesting increased vulnerability to a downside sweep. In the short term, the $2.4K support remains a key level to watch, as its break could lead to a liquidity-driven dip toward subsequent stop clusters just below.
The situation with Ethereum demonstrates bearish sentiments and market uncertainty. Future actions are expected to depend on the ability to hold key support levels and reaction to liquid areas.
