Ethereum Price Analysis: ETH Tests Crucial Support Amid Rising Selling Pressure

Ethereum has prolonged its decline towards a crucial higher-timeframe demand zone round $3K. While the broader development stays pressured, the present location aligns with main liquidity swimming pools and potential areas of curiosity for giant gamers.

A decisive response right here will decide whether or not ETH enters a reduction part or continues to deepen towards macro demand ranges.

Technical Analysis

By Shayan

The Daily Chart

Ethereum continues to float decrease inside a broad descending construction, steadily approaching the $3K–$3.05K demand block that beforehand acted because the springboard for the July–August rally. This space additionally aligns intently with the decrease boundary of the falling wedge, a sample sometimes related to late-correction phases slightly than development initiation.

The failure to reclaim the 100-day shifting common close to $3.8K triggered a sustained selloff, with the 200-day MA now positioned above value for the primary time since early summer time. This shift displays weakening medium-term momentum, however the clustering of confluence components across the $3K zone means that sellers could quickly face diminishing dominance.

The present every day candle our bodies stay compressed, with prolonged wicks to the draw back, indicating absorption close to the demand threshold. Should Ethereum stabilise and type a better low construction inside this area, a corrective part towards $3.4K–$3.55K turns into believable. However, a every day shut beneath $2.95K would invalidate the wedge assist and expose the broader $2.6K–$2.7K macro demand zone.

The 4-Hour Chart

On the decrease timeframe, Ethereum is shifting inside a clearly outlined descending channel, with every successive decrease high displaying weakening volatility. The most up-to-date swing low penetrated beneath the mid-channel liquidity cluster earlier than sharply reversing, a traditional liquidity sweep that usually precedes short-term reduction rallies.

The $3K–$3.1K degree has now been examined a number of occasions, forming a near-textbook response zone the place algorithmic exercise is often concentrated. Above value sits a newly created imbalance window at $3.25K–$3.33K, which can act as a magnet ought to consumers engineer a corrective push.

Nevertheless, the construction stays firmly bearish till Ethereum can reclaim the channel midline close to $3.35K. Failure to take action would keep the downward drift and improve the chance of probing deeper into the liquidity band nearer to $2.9K.

Onchain Analysis

By Shayan

The Ethereum Futures Average Order Size chart reveals an necessary behavioural shift beneath the floor of the latest decline. During the most recent pullback from $4.1K all the way down to the $3K area, the order movement composition transitioned towards a cluster of smaller retail-driven orders, whereas large-size executions have noticeably thinned.

This configuration seems much like earlier phases the place retail capitulation shaped near-cycle lows and bigger market members amassed throughout structurally discounted value zones. Although there’s not but a transparent surge in whale-sized futures orders, the absence of aggressive promoting from massive palms means that the present downturn could mirror forced-liquidation strain greater than deliberate institutional distribution.

This interpretation aligns with the futures liquidation heatmap, which exhibits a dense band of liquidations absorbed round $3K. Historically, such concentrated wipeouts usually precede at the least a short lived structural restoration as extra leverage is cleared.

If Ethereum can defend the present demand area and spot flows start to mirror larger-size orders, the setup would resemble the early formation of a base earlier than a broader corrective upswing. However, if this area breaks decisively, the following significant liquidity focus lies considerably decrease, implying that the market has not but concluded its deleveraging part.

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