Ethereum has been closing between $2,650 and $2,750 for the past week, creating uncertainty in the short term. The price action remains indecisive as bulls struggle to reclaim the $2,800 level, a key supply zone that could determine Ethereum’s next move. While the long-term outlook remains uncertain, Ethereum is trading at crucial demand levels, facing continuous selling pressure that has kept price action muted.

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Investors are trying to stay calm amid volatility, but fear is spreading as Ethereum shows signs of weakness compared to Bitcoin. Some analysts worry that if ETH fails to hold above $2,600, a deeper correction could follow. However, others remain optimistic, suggesting that ETH could be forming a long-term bullish structure.

Crypto analyst Jelle shared a technical analysis on X revealing that ETH still trades inside a multi-year ascending triangle, a formation that has historically signaled strong potential for a breakout. If ETH can hold above the current levels and push past the $2,800 mark, it could trigger a recovery toward the key $3,000 resistance. For now, all eyes are on Ethereum’s next move, as the coming days could be decisive in shaping its short-term trajectory.

Ethereum Testing Crucial Liquidity Levels

Ethereum is currently trading between key liquidity levels of short-term demand and supply, with price action trapped in a tight range. Over the past week, ETH has closed between $2,650 and $2,750, creating uncertainty about its short-term direction. Investors remain divided, with some expecting a further correction and extended consolidation phase, while others anticipate a recovery rally soon. The market is waiting for a breakout or breakdown confirmation to determine the next trend.

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Ethereum is attempting to push above the $2,700 mark and hold it as support, which would be the first sign of bullish momentum. However, for a confirmed recovery phase, ETH must reclaim the $2,800 and $3,000 levels. These key resistance zones have acted as strong supply areas in the past and will likely dictate Ethereum’s next major move. If ETH fails to reclaim these levels, a deeper correction into lower demand around the $2,500 mark could take place.

Jelle’s analysis on X reveals that ETH is still trading inside a massive ascending triangle, a multi-year bullish pattern. He noted that fakeouts have occurred on both the upside and downside, taking out liquidity in both directions. With downside liquidity now taken, Jelle expects a comeback soon, suggesting ETH could soon attempt to reclaim lost ground.

If Ethereum manages to break above the $2,800 mark and sustain its momentum, a move toward the $3,000 level would be the next target. However, if selling pressure continues to dominate the market, ETH could remain in a consolidation phase or even experience further downside. The next few days will be crucial in determining whether ETH can regain bullish momentum or if a deeper correction is ahead.

Price Action Lacks Short-Term Direction

Ethereum is trading at $2,720 after days of sideways movement below the $2,800 mark, struggling to gain momentum for a breakout. Bulls need to step up and push the price above this level as soon as possible to shift sentiment and reclaim control of price action. The $2,800 mark has acted as a strong supply zone, and breaking above it would open the door for a move toward the $3,000 level.

On the downside, defending the $2,700 and even the $2,600 level is crucial for maintaining bullish momentum. If ETH holds these levels for an extended period, it would signal strong demand and support the possibility of a recovery rally. A sustained move above $2,700 would encourage buyers to step in, increasing the chances of ETH retesting higher resistance zones.

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However, failure to hold above $2,700 could expose Ethereum to further selling pressure. If ETH drops below the $2,600 level, a deeper correction into lower demand areas around $2,500 could follow. The next few days will be decisive in determining whether Ethereum can establish a solid base for a bullish reversal or if bears will continue to dominate price action.

Featured image from Dall-E, chart from TradingView

Data shows social media discussions related to Ethereum have spiked recently, something that may be positive for the struggling ETH price.

Ethereum Social Dominance Has Shot Up Over The Past Day

According to data from the analytics firm Santiment, the Ethereum Social Dominance has just seen a significant increase. The “Social Dominance” here refers to an indicator that’s based on another metric known as the Social Volume.

The Social Volume basically tells us about the amount of discussion that a given topic or term is receiving on the major social media platforms. The metric calculates its value by counting up the unique total number of posts/messages/threads on these platforms making mentions of the term.

It might seem odd that the metric doesn’t just count up the mentions themselves, but the reason behind it is that the other methodology can sometimes paint an inaccurate picture of the situation on social media.

This can happen when there isn’t much activity present on the platforms, but there are a few posts from enthusiasts up. Such posts can contain a notable number of mentions, enough to skew the Social Volume by themselves.

By tracking only the posts themselves, the indicator only spikes when the discussion is more spread out across social media (that is, there are a high number of users participating in talks).

Now, the actual indicator of relevance here, the Social Dominance, determines what part of cryptocurrency-related discussions that any given token is accounting for. The metric makes use of the Social Volume of the asset and that of the top 100 coins by market cap to make the comparison.

Below is the chart shared by Santiment, which shows the trend in the Social Dominance for Ethereum over the last few months:

Looks like the value of the metric has witnessed a sharp jump recently | Source: Santiment on X

As is visible in the graph, the Ethereum Social Dominance has just observed a spike, meaning that the share of social media discussions occupied by the asset has shot up.

Following this increase, the indicator is now sitting at 9.2%, which means almost a tenth of the discussions related to the cryptocurrency sector involve ETH in some form. The asset’s price has been struggling recently, so this renewed interest from social media users may be a positive sign for things to come in the week.

The trend in Social Dominance isn’t the only bullish development that Ethereum has seen, as the data of the other indicator attached in the chart by the analytics firm shows.

It appears that the Supply On Exchanges have plunged during the last couple of weeks, which suggests the investors have been making net withdrawals of the coin from the centralized exchanges. In total, 0.83% of the ETH supply has left exchanges in this period, leaving just 6.38% still sitting on these platforms.

ETH Price

At the time of writing, Ethereum is trading at around $2,700, up 1% in the last week.

The trend in the ETH price over the last five days | Source: ETHUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com