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

Ethereum has extended its decline toward a critical higher-timeframe demand zone around $3K. While the broader trend remains pressured, the current location aligns with major liquidity pools and potential areas of interest for large players.

A decisive reaction here will determine whether ETH enters a relief phase or continues to deepen toward macro demand levels.

Technical Analysis

By Shayan

The Daily Chart

Ethereum continues to drift lower within a broad descending structure, steadily approaching the $3K–$3.05K demand block that previously acted as the springboard for the July–August rally. This area also aligns closely with the lower boundary of the falling wedge, a pattern typically associated with late-correction phases rather than trend initiation.

The failure to reclaim the 100-day moving average near $3.8K triggered a sustained selloff, with the 200-day MA now positioned above price for the first time since early summer. This shift reflects weakening medium-term momentum, but the clustering of confluence factors around the $3K zone suggests that sellers may soon face diminishing dominance.

The current daily candle bodies remain compressed, with extended wicks to the downside, indicating absorption near the demand threshold. Should Ethereum stabilise and form a higher low structure within this region, a corrective phase toward $3.4K–$3.55K becomes plausible. However, a daily close below $2.95K would invalidate the wedge support and expose the broader $2.6K–$2.7K macro demand zone.

The 4-Hour Chart

On the lower timeframe, Ethereum is moving inside a clearly defined descending channel, with each successive lower high showing weakening volatility. The most recent swing low penetrated beneath the mid-channel liquidity cluster before sharply reversing, a classic liquidity sweep that often precedes short-term relief rallies.

The $3K–$3.1K level has now been tested multiple times, forming a near-textbook reaction zone where algorithmic activity is typically concentrated. Above price sits a newly created imbalance window at $3.25K–$3.33K, which may act as a magnet should buyers engineer a corrective push.

Nevertheless, the structure remains firmly bearish until Ethereum can reclaim the channel midline near $3.35K. Failure to do so would maintain the downward drift and increase the probability of probing deeper into the liquidity band closer to $2.9K.

Onchain Analysis

By Shayan

The Ethereum Futures Average Order Size chart reveals an important behavioural shift beneath the surface of the recent decline. During the latest pullback from $4.1K down to the $3K region, the order flow composition transitioned toward a cluster of smaller retail-driven orders, while large-size executions have noticeably thinned.

This configuration appears similar to previous phases where retail capitulation formed near-cycle lows and larger market participants accumulated during structurally discounted price zones. Although there is not yet a clear surge in whale-sized futures orders, the absence of aggressive selling from big hands suggests that the current downturn may reflect forced-liquidation pressure more than deliberate institutional distribution.

This interpretation aligns with the futures liquidation heatmap, which shows a dense band of liquidations absorbed around $3K. Historically, such concentrated wipeouts often precede at least a temporary structural recovery as excess leverage is cleared.

If Ethereum can defend the current demand region and spot flows begin to reflect larger-size orders, the setup would resemble the early formation of a base before a broader corrective upswing. However, if this region breaks decisively, the next meaningful liquidity concentration lies significantly lower, implying that the market has not yet concluded its deleveraging phase.

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