Ethereum’s Ongoing Struggle in a Corrective Phase
Ethereum’s price continues to struggle amidst a corrective phase, with persistent bearish momentum raising concerns about a potential drop below $3,000. Despite recent rebound attempts, the market lacks the necessary demand strength for a sustained bullish reversal.
Key Resistance and Support Levels
Ethereum remains trapped in a corrective phase as it grapples with key resistance levels. The daily chart reveals that ETH is trading below a significant descending trendline that has constrained price action since November’s peak. Currently hovering around $3,100, Ethereum is below both the 100‑day and 200‑day moving averages, with the latter aligning with a major supply area between $3,400 and $3,500 that continues to attract selling pressure.
Critical Resistance Zone
The critical resistance zone lies between $3,300 and $3,600. A daily close above this range could signal a potential trend shift, but until then, upside movements are likely to remain corrective.
Support Zone
On the downside, the support zone between $2,600 and $2,500 is crucial, representing the origin of a strong bullish impulse earlier in the cycle.
4‑Hour Chart Perspective
The 4‑hour chart shows Ethereum trading within a rising corrective channel, but it remains capped by the descending trendline and a local supply zone around $3,300 to $3,400. Repeated rejections from this resistance suggest absorption rather than aggressive buying. If Ethereum fails to reclaim $3,300 with strength, downside liquidity near $3,000 and $2,900 could be targeted.
On‑Chain Liquidity Landscape
On‑chain analysis indicates a dense cluster of liquidation levels between $3,400 and $3,700, suggesting potential resistance. However, Ethereum has struggled to reach this range, indicating weak demand. Below current levels, liquidation density is thinner, with the next notable cluster near $2,700 to $2,600. This imbalance suggests that downside moves may face less resistance, increasing the likelihood of a liquidity‑driven decline before any sustained upside.
Conclusion
In conclusion, Ethereum’s market structure and liquidation profile suggest that the price may need to flush out weak long positions to the downside before any meaningful upward movement. Until key resistance levels are overcome, Ethereum remains vulnerable to continued corrective action.
