Ethereum has rebounded toward $2.37K after finding demand near $2.3K; however, the recovery remains below its broken ascending channel. Buyers are demonstrating an initial response, yet the overarching trend of lower highs maintains a cautious outlook. On the daily timeframe, Ethereum’s correction extended into the highlighted $2.22K-$2.31K demand zone before producing consecutive recovery candles. The rebound indicates that buyers are protecting the upper segment of this area, although it has not yet altered the bearish framework established following September’s peak. ETH continues to trade below the previous lower boundary of the ascending channel, which now serves as a potential resistance level. The marked $2.47K-$2.52K supply zone overlaps with this broken structure, presenting a significant barrier to a sustained recovery.
Maintaining a position above $2.31K may facilitate an additional recovery toward the range of $2.4K-$2.44K, followed by the approach of the supply zone. However, until Ethereum reclaims the range of $2.47K-$2.52K and the channel boundary, the advance appears corrective. Renewed weakness beneath the recent low around $2.28K would expose deeper support within the demand zone toward $2.22K. The 4-hour chart indicates that Ethereum is experiencing a recovery within a descending channel following a period of consolidation around $2.3K. Recent candles have established a brief series of higher lows, propelling the price toward $2.37K; however, the overarching downtrend continues to persist. The immediate resistance area is positioned between $2.39K and $2.42K, where prior consolidation may entice renewed selling pressure.
Clearing this region would bring the descending channel’s upper boundary around $2.46K-$2.48K into focus. Its overlap with the 2.47K-2.52K supply zone makes this a particularly significant test for buyers. Conversely, a rejection accompanied by a decline below the recent $2.33K-$2.35K recovery base would heighten the likelihood of a subsequent test of the identified $2.27K-$2.31K support zone. A sustained breakdown beneath $2.27K would favour continuation toward the lower portion of daily demand near $2.22K. The two-week Binance ETH/USDT liquidation heatmap reveals significant estimated liquidation concentrations situated above the recovering price level. Bands around $2.39K-$2.4K and $2.43K-$2.44K may gain significance should the rebound persist, while a wider concentration is observed around $2.52K-$2.55K. The 2.43K-2.44K cluster resides beneath the primary technical supply zone.
A movement through it could instigate short liquidations and expedite the rebound toward descending resistance. However, such an acceleration would not independently validate a more extensive bullish reversal. Below the current price, a significant liquidation band persists in the range of $2.27K to $2.29K, with further concentrations extending toward $2.22K to $2.25K. Losing the recent recovery structure could bring these pools back into focus, potentially amplifying a decline through long liquidations. Currently, the heatmap indicates the potential for a short-term liquidity-driven rebound, although the technical trend continues to exhibit bearish characteristics beneath the overhead supply.
