Ethereum’s recent price action reflects a market transition from impulsive selling into a potential short-term stabilization phase. After a sharp decline towards the $1,750 demand zone, ETH has reacted with a moderate rebound, yet is expected to continue fluctuating in the short term.
Ethereum Price Analysis: The Daily Chart
On the daily chart, ETH continues to trade inside its descending channel, with lower highs and lower lows still intact. The recent impulsive drop pushed the price sharply into the $1.8K demand area, where buyers reacted and triggered a rebound towards the $2.1K region.
However, the asset remains below the 0.5 Fibonacci level at $2.4K and well below the 0.618 level at $2.5K, confirming that the current move is corrective rather than a confirmed trend reversal.
The $2.7K range, aligned with the 0.702–0.786 retracement levels, stands as a major supply zone and would be the key resistance area if a stronger recovery unfolds. As long as ETH remains below $2.5K, the broader structure favors sellers, while the $1.7K level remains the critical support to hold.
ETH/USDT 4-Hour Chart
On the 4-hour chart, the price action has formed a short-term contracting structure after the sharp bounce from $1.7K. The market is currently fluctuating between the ascending short-term support trendline and the descending local resistance trendline, compressing near the $2.1K area. A successful break above $2.1K could open the path towards $2.5K, which is the next key resistance.
Conversely, losing the $2K intraday support would likely expose the $1.8K zone again. For now, ETH appears to be in a short-term consolidation phase between $1.8K and $2.1K following the recent volatility spike.
Sentiment Analysis
The Ethereum Spot Average Order Size chart shows a notable increase in green dots during the recent decline towards the $1.8K region. These green clusters indicate large whale-sized spot orders entering the market as prices traded at low levels. This behavior suggests potential accumulation by bigger players during the panic-driven sell-off.
While this does not immediately signal a trend reversal, the concentration of whale activity near $1.8K strengthens this zone as a structurally important demand area. If accumulation continues and price stabilizes above $2K, the probability of a broader recovery towards higher resistance levels will gradually increase.
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