Ethereum has been struggling below the $2,800 mark for days, with sentiment around the second-largest cryptocurrency in the world becoming increasingly negative. Persistent selling pressure has left investors and analysts worried about Ethereum’s ability to stage a recovery, with many starting to lose hope for a rally. 

The bearish sentiment has only intensified as ETH continues to underperform compared to Bitcoin and other major assets, causing frustration among market participants who expected a stronger start to the year.

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Despite this negative outlook, there are reasons for optimism. Top analyst Jelle shared a technical analysis revealing that Ethereum is still trading within a multi-year ascending triangle, a bullish chart pattern that could signal a significant move higher. This pattern suggests Ethereum may just be consolidating before a potential breakout into higher prices. Historical patterns have shown that ascending triangles often lead to explosive price moves when key resistance levels are breached.

As ETH trades near critical support levels, the coming days will be crucial for determining its short-term direction. Investors are watching closely to see if this bullish pattern holds and whether Ethereum can regain momentum, potentially sparking a recovery that could restore confidence in the market.

Ethereum Prepares For A Decisive Move

Ethereum appears to be gearing up for a decisive move as it struggles to reclaim momentum amid a challenging market environment. Investors are growing increasingly frustrated with Ethereum’s lackluster price action, and optimism for a rally is fading. 

Compared to Bitcoin and other altcoins like Solana, Ethereum has been underperforming, leaving bulls with little control over the price action. The constant selling pressure has dampened hopes for a recovery, leading many to question whether Ethereum can regain its footing.

However, not all hope is lost. Top analyst Jelle recently shared a technical analysis on X, pointing out that Ethereum is still trading within a multi-year ascending triangle—a bullish pattern that historically precedes explosive moves. 

According to Jelle, Ethereum’s price has faked out on both sides of this structure, a behavior that often suggests the next move will be the real deal. This technical setup indicates that Ethereum is building energy for a significant breakout or breakdown.

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Jelle also highlights the $4,000 mark as a critical supply zone. Ethereum has tested this level three times without success, but he believes the fourth attempt could finally break through. If Ethereum can clear this key resistance, it would mark a turning point and potentially ignite a rally into price discovery, restoring confidence among investors.

Price Analysis: Key Levels To Hold

Ethereum is currently trading at $2,650 after several days of selling pressure and market uncertainty. The price has struggled to reclaim the $2,800 mark since last Wednesday, reflecting a bearish sentiment that has dominated ETH’s price action since late December. Bulls are facing increasing challenges as the momentum remains on the side of the bears, and confidence among investors continues to weaken.

To reverse the ongoing downtrend, bulls need to hold the $2,600 level as strong support. This price has acted as a key demand zone in the past and could provide the foundation for a recovery. However, simply holding this level is not enough—Ethereum must also reclaim the $2,800 mark and, more importantly, break above the $3,000 level to signal a shift in market sentiment.

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If Ethereum can hold above $2,600 and successfully reclaim both the $2,800 and $3,000 levels, it could spark a push into higher supply zones. A move like this would provide the momentum needed for bulls to regain control and potentially drive ETH toward stronger resistance levels. However, failing to hold $2,600 could open the door to further downside, with the next critical support levels significantly lower.

Featured image from Dall-E, chart from TradingView

Ethereum has just experienced one of the most chaotic trading days in its history, with price action resembling a rollercoaster. ETH plunged over 30% in less than 24 hours as fears of a U.S. trade war triggered a massive market selloff. However, just as quickly as panic set in, the market rebounded following President Trump’s announcement of negotiations with Canada and Mexico to lift tariffs. This sharp turnaround injected optimism back into the market, but uncertainty remains high.

The sudden drop wiped out millions in leveraged positions, creating one of the largest liquidation events in Ethereum’s history. Data from Glassnode reveals that yesterday, $76.4 million in ETH long liquidations hit the market, with $55.8 million being wiped out in a single hour—marking the second-largest liquidation spike in a year, just behind the $56 million event on December 9. This intense price action highlights the unprecedented volatility in Ethereum and the broader crypto market.

Now, the focus shifts to Ethereum’s ability to sustain its recovery and reclaim key resistance levels. With uncertainty still looming, the next few days will be critical in determining whether ETH can regain its bullish momentum or if further downside is on the horizon.

Ethereum Open Interest Drops Significantly

Ethereum has experienced one of the most volatile trading sessions in its history, dropping over 30% in less than 24 hours amid U.S. trade war fears, only to recover rapidly following President Trump’s announcement of negotiations with Canada and Mexico. This extreme price action has shaken investor confidence, but analysts suggest ETH is now stabilizing and preparing for a push higher.

Key data from Glassnode reveals the extent of the liquidation event that fueled this historic drop. Yesterday, $76.4 million in ETH long liquidations hit the market, with $55.8 million wiped out in a single hour—the second-largest spike in a year, just behind the $56 million liquidation recorded on December 9. The rapid price decline triggered a significant unwinding of futures open interest. ETH futures OI fell from $20.5 billion at the start of February to $15.9 billion today, wiping out $4.6 billion in leveraged positions.

Despite this sharp decline, Ethereum futures OI remains ~22% above its yearly trendline of $13 billion, suggesting that leverage remains elevated. Ethereum’s price has been heavily influenced by leveraged trading, as speculation and aggressive long positions fueled rapid swings. As the market recalibrates, a shift towards spot-driven price action could pave the way for healthier and more sustainable growth.

The coming weeks will be crucial in determining whether Ethereum can recover its bullish momentum. If ETH consolidates above key support levels and open interest stabilizes, the market could be setting up for another leg higher. However, if leverage remains high and speculative trading continues to dominate price action, further volatility and corrections may follow.

ETH Struggles Below Key Level Amid Market Uncertainty

Ethereum (ETH) is trading at $2,810 after a highly volatile start to the week. Despite a sharp recovery from its recent lows, bulls are still facing serious challenges as ETH trades below the crucial $3,000 mark, a level that also aligns with the 200-day moving average. This key resistance has historically acted as a major pivot point for Ethereum’s price action, making it a critical level to reclaim for bullish momentum to resume.

If bulls want to establish a new uptrend, ETH needs to break above the $3,000 mark with strength and hold it as support. A successful reclaim of this level could set the stage for a sustained rally toward $3,200 and beyond. However, failure to do so leaves Ethereum vulnerable to further downside risk.

Losing the $2,800 level could trigger additional selling pressure, potentially leading ETH to revisit lower demand levels around $2,650–$2,700. With market sentiment still uncertain and leveraged positions unwinding, traders are closely watching price action for confirmation of the next major move. Whether Ethereum can regain its footing or faces further declines will depend on its ability to reclaim key resistance levels in the coming days.

Featured image from Dall-E, chart from TradingView

After experiencing a flash crash to $2,125 on February 2, Ethereum (ETH) swiftly rebounded to a high of $2,905, triggering liquidations for both long and short positions amid a highly volatile trading period. While the token currently hovers around $2,700, crypto analyst Ali Martinez has identified a critical support level that must hold for Ethereum to sustain its bullish momentum.

Ethereum Must Hold This Support Level For Bullish Momentum

In a post on X today, seasoned crypto analyst Ali Martinez pinpointed the $2,238 to $2,614 price range as Ethereum’s ‘most important’ support zone. According to Martinez, approximately 12.18 million crypto wallets acquired 63.07 million ETH within this range. The analyst further emphasized:

It doesn’t matter whether Ethereum is inflationary, deflationary, or whatever. What truly matters is whether it holds this support level.

To understand why this price level is important, it shows that a significant number of investors and traders bought ETH within this range. When a large number of wallets hold assets at similar price levels, this creates a zone of support because these holders are less likely to sell at a loss, thereby providing a floor for the price.

Support levels also carry psychological weight in trading. Investors who bought ETH within this range tend to perceive it as a fair valuation, increasing the likelihood that they will defend this level by either holding or accumulating more ETH. This collective sentiment can provide stability and potentially prevent deeper price drops.

Fellow crypto analyst Ted echoed similar sentiments regarding Ethereum’s price trajectory, affirming that the long-term outlook remains positive. Ted remarked:

ETH still holding the uptrend trendline and recently bounced back from a crucial support level. Along with that, BlackRock is buying $250M+ worth of ETH, which will soon reflect in its price action. $10K+ ETH is programmed this cycle.

Additionally, Martinez highlighted the emergence of a potentially bullish inverse head-and-shoulders pattern on Ethereum’s daily chart. For this pattern to validate a bullish breakout, ETH must maintain support above $2,700. If successful, the next upside target could extend as high as $7,000.

Could Ethereum Price Be Heading Downwards?

Despite these bullish indicators, concerns persist over Ethereum’s price action, as the digital asset has significantly underperformed compared to cryptocurrencies like Bitcoin (BTC), SUI, and XRP over the past year. A recent report indicates that large ETH holders may be gradually losing confidence in the asset.

Moreover, recent analysis suggests that Ethereum may be at risk of an extended downturn in the coming days. At press time, ETH is trading at $2,774, down 0.9% over the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com