Ethereum (ETH) Ready for Liftoff After Perfect $2,880 Bounce

Ethereum has rebounded after touching $2,880, a level marked by earlier inefficiencies. Analysts say the downside has now been cleaned up, and the chart structure appears reset.

Both technical and on-chain data are showing conditions that traders are watching for signs of the next move.

Gap Filled, Price Structure Reset

Crypto Patel noted that Ethereum filled the Fair Value Gap near $2,880 and held the level. With no bearish gaps left on the chart, the current structure now looks more stable. The asset has moved back above key short-term zones, opening the way for another leg higher.

Notably, two support levels have been identified at $2,622 and $2,256. These match major Fibonacci retracement zones and are viewed as possible areas for accumulation. Patel says any retest of these levels could set up a strong long opportunity, especially for those targeting prices in the $10,000 to $15,000 range.

At the time of writing, Ethereum is trading at around $3,000, showing a minor daily decline. Resistance zones are placed at $3,048, followed by $4,058 and $4,960.

Chart Pattern Points to $17K Potential

A longer-term pattern on the 3-day chart suggests a possible ascending inverse head-and-shoulders, as tracked by Trader Tardigrade. The neckline has a slight upward slope and sits just above the current price. If the neckline breaks, the estimated move based on the pattern’s depth puts the target near $17,000.

Elsewhere, Daan Crypto Trades is watching broader levels at $2,800 and $4,100. These areas have been tested multiple times over the past two years. In the shorter term, he flags $3,350 as a level that may act as support or resistance depending on market reaction.

Experts have also noted that current price action, combined with high leverage, leaves the market exposed to sharp moves.

On-Chain Support Matches Historical Lows

According to CryptosRus, Ethereum recently touched $2,870, which lines up with the realized cost basis for both retail traders and large holders. This area has been a cycle low in the past. Whale addresses holding over 10,000 ETH are reportedly adding to positions, while smaller wallets are reducing exposure.

Liquidation data also confirms the shift. Longs are no longer being flushed out at each dip, while shorts are increasing.

Key Data Ahead

CryptoWZRD noted that ETH closed its recent daily candle with a long downside wick, a signal that buyers may have stepped in late in the session. Their focus is now on ETH/BTC strength and short-term moves around the $3,130 level. Holding above this zone would favor continuation. A failure to hold could lead to sideways price action.

They also pointed to upcoming US labor data as a potential trigger for volatility, especially through its effect on Bitcoin. Until then, traders appear to be watching key levels and preparing for the next major move.

Meanwhile, Ethereum appears to be entering a bottoming phase, with multiple indicators pointing to a gradual build-up of liquidity around key levels.

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