The post ETH at Risk of Falling to $2K if It Doesn’t Break This Key Level appeared on BitcoinEthereumNews.com. Home » ETH ‘; } function loadTrinityPlayer(targetWrapperThe post ETH at Risk of Falling to $2K if It Doesn’t Break This Key Level appeared on BitcoinEthereumNews.com. Home » ETH ‘; } function loadTrinityPlayer(targetWrapper

ETH at Risk of Falling to $2K if It Doesn’t Break This Key Level

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Summarize with AI



Summarize with AI

Ethereum continues to trade in a corrective environment, with the price compressing between well-defined support and resistance zones. Despite several recovery attempts, the market remains structurally weak, suggesting that the current phase is more consistent with consolidation and distribution rather than a confirmed bullish continuation.

Technical Analysis

By Shayan

The Daily Chart

On the daily timeframe, ETH remains capped beneath a descending trendline that has defined the broader corrective structure since the local peak. Each attempt to reclaim higher levels has been met with selling pressure, reinforcing this trendline as a dominant dynamic resistance. The asset is also trading below the medium and long-term moving averages, increasing the risk that rallies remain corrective rather than impulsive.

The nearest overhead supply sits around the $3.4K to $3.6K region, where previous breakdowns occurred and where the descending trendline intersects with prior consolidation. As long as Ethereum fails to reclaim and hold above this zone, downside continuation remains a valid scenario. Below current levels, the $2.6K to $2.8K region represents the first meaningful demand zone, but structurally it appears more like an intermediate pause rather than a definitive cycle low.

The 4-Hour Chart

On the 4-hour timeframe, ETH is trading inside a rising corrective channel within a broader downtrend. While this structure has supported short-term bounces, it has not altered the higher-timeframe bearish bias. The lower highs formed beneath the descending trendline continue to signal weak upside momentum, and recent rejections from the channel resistance reinforce the idea that buyers lack follow-through.

A clean breakdown below the channel’s lower boundary has occurred, likely accelerating downside momentum, opening the door to a move into deeper demand zones. Short-term liquidity has already been partially cleared, reducing the probability of an immediate upside continuation and increasing the likelihood of a deeper liquidity-driven move.

Sentiment Analysis

By Shayan

The yearly Ethereum liquidation heatmap reveals a critical and largely untouched liquidity cluster concentrated around the $2K region. This zone stands out as one of the most significant pools of resting liquidation liquidity on the chart, built up over an extended period without being meaningfully tested. Historically, markets tend to gravitate toward such areas during corrective phases, especially when the price trades well above them while leverage gradually rebuilds.

The presence of this large liquidity pocket suggests that a downside sweep toward $2K cannot be ruled out before any sustainable bullish structure emerges. From a market mechanics perspective, such a move would serve to flush out remaining long leverage, reset funding conditions, and establish a more stable base for future upside. Until this liquidity is either consumed or invalidated by strong spot-driven demand, the risk remains skewed toward further downside exploration.

In summary, Ethereum remains structurally vulnerable while trading below major resistance, with liquidation data reinforcing the probability of a deeper corrective move. A decline toward the $2K liquidity cluster would align with both technical and on-chain dynamics and may ultimately be required before Ethereum can transition into a healthier bullish phase.

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