Is Bottom In for ETH? $1.8K Support Holds The Key To Recovery

Following a brutal selloff towards the $1.8K demand area, Ethereum stabilized and produced a corrective retracement. However, this acquisition lacks strong momentum and occurs within a broad bearish structure. The current price behavior shows a possible consolidation between the well-defined demand area below and the upper supply area which continues to consolidate upward efforts.

Ethereum Price Analysis: Daily Chart

In the daily time frame, ETH remains inside a bearish channel, with the price trading below both the 100-day and 200-day moving averages, which are now descending and acting as strong resistance. A recent drop below the previous swing high around $2.4K accelerated the sell-off, confirming bearish continuation and prompting a move to the sought-after $1.8K area.

Repetitions from this important area show that buyers are protecting this important historical support, which has served as an accumulation point. However, the price is currently trading around $2K and remains below the internal resistance near $2.2K.

As long as Ethereum remains between $1.8K and $2.2K, the market may consolidate within this range. A daily close below $1.8K will expose the next lower pocket to $1.6K, while a retracement of $2.2K could pave the way to the $2.6K supply area.

ETH/USDT 4 Hour Chart

Zooming into the 4-hour period, the price action shows a compression structure following a major decline. Ethereum formed a local low near $1.8K and then produced a higher low, creating a short-term bullish line against a broader downtrend. At the same time, the descending resistance line from the recent swing high continues with the price, forming a strengthening range.

Current supply lies at around $2.2K, where the previous split occurred, while nearby demand remains at $1.8K. With prices rising near $1,960, Ethereum appears to be consolidating between these two areas. A break above $2.2K on the 4-hour chart would indicate a short-term bullish continuation at $2.4K, while a break below $1.8K could invalidate the consolidation and resume the dominant bearish trend.

In general, this structure remains strong in high periods, but in the short term, Ethereum is pressing between the demand of $1.8K and the supply of $2.8K, and the next unexpected move will probably come from the decisive break of this range.

Analyzing Emotions

The heat map of ETH liquidation in the last 6 months provides an important confirmation of the bearish technical structure. A significant pool of liquidity has been built around and just below the $2K level, which has recently acted as a strong magnet for the price. A sharp sell-off in the area confirmed that inflation was in focus, leading to significant volatility in long positions.

Despite this closing event, the heat map still shows pockets of net cash that are slightly expanding below current price levels, indicating that the market may not have fully completed its downside objectives yet. These remaining clusters continue to exert downward pressure on value, especially if local demand remains weak and derivatives repositioning rebuilds on the long side very quickly.

That said, the intensity of the foreclosure around $2K suggests that a reasonable portion of the forced sale has already occurred. This reduces the immediate closing pressure and explains the temporary stability observed after the descent. However, from an on-chain point of view, this behavior supports a consolidation or corrective retracement, not a confirmed trend reversal, unless interest rates on cash flow back above current levels.

In summary, the on-chain data coincides closely with the technical picture: Ethereum is still operating in a bearish liquidity-driven environment, with low risks that remain active as long as the price fails to recover key supply points and attract continued local demand.