Ethereum’s recent price movements indicate a market shifting from aggressive selling towards a possible short-term stabilization phase. Following a significant drop to the $1,750 demand zone, ETH has shown a moderate recovery, but it is anticipated to keep oscillating in the near term. On the daily chart, ETH remains within its descending channel, maintaining the pattern of lower highs and lower lows. The recent impulsive drop sent the price plunging into the $1.8K demand zone, prompting buyers to respond and initiate a rebound toward the $2.1K region.
However, the asset remains below the 0.5 Fibonacci level at $2.4K and well under the 0.618 level at $2.5K, confirming that the current move is corrective rather than a confirmed trend reversal. The $2.7K range, which corresponds with the 0.702–0.786 retracement levels, is identified as a significant supply zone and would serve as the critical resistance area should a more robust recovery take place. As long as ETH stays under $2.5K, the overall structure leans towards sellers, with the $1.7K level being the key support to maintain.
On the 4-hour chart, the price action has established a short-term contracting structure following the significant rebound from $1.7K. The market is presently oscillating between the rising short-term support trendline and the falling local resistance trendline, tightening around the $2.1K zone. A successful break above $2.1K could pave the way toward $2.5K, which stands as the next significant resistance level. On the flip side, a breach of the $2K intraday support could potentially bring the $1.8K zone back into play. Currently, ETH seems to be experiencing a brief consolidation period, fluctuating between $1.8K and $2.1K after the recent surge in volatility. The Ethereum Spot Average Order Size chart indicates a significant uptick in green dots amid the recent drop toward the $1.8K level. The green clusters signify substantial whale-sized spot orders making their way into the market while prices hovered at lower levels. This behavior indicates a possible accumulation by larger entities amid the sell-off fueled by panic.
Although this does not instantly indicate a trend reversal, the heightened whale activity around $1.8K reinforces this level as a crucial demand zone. Should accumulation persist and the price maintain stability above $2K, the likelihood of a more extensive recovery towards elevated resistance levels will steadily rise. Disclaimer: The information presented on CryptoPotato reflects the views of the quoted writers. This statement does not reflect CryptoPotato’s stance on buying, selling, or holding any investments. Investors are strongly encouraged to perform their own due diligence prior to making any investment choices. Utilize the information given at your own discretion. Refer to the Disclaimer for additional details.