Ethereum Price Prediction: Has the Bottom Been Reached for ETH? Support at $1.8,000 is the key to recovery

After the aggressive sell-off towards the $1.8K demand region, Ethereum stabilized and staged a corrective recovery. However, this recovery lacks strong momentum and is unfolding within a broader bearish structure. Current price behavior indicates a potential consolidation between a well-defined demand zone below and a supply zone above that continues to limit upside attempts.

Ethereum Price Analysis: The Daily Chart

On the daily time frame, ETH remains within a descending channel, with price trading below both the 100-day and 200-day moving averages, which are now sloping downward and serving as dynamic resistance. The recent collapse below the previous major swing low around $2.4K accelerated the sell-off, confirming bearish continuation and initiating a move towards the $1.8K demand zone.

The recovery from this crucial zone shows that buyers are defending this important historical support, which previously served as an accumulation zone. However, the price is currently trading around $2K and remains below internal resistance around $2.2K.

As long as Ethereum remains between $1.8K and $2.2K, the market will likely consolidate within this range. A daily close below $1.8K would expose the next lower liquidity position towards $1.6K, while a clawback of $2.2K could open the way to the $2.6K supply area.

ETH/USDT 4-hour chart

Zooming in on the four-hour time frame, the price action reveals a compression structure following the sharp decline. Ethereum formed a local bottom near $1.8K and then produced a higher low, creating a short-term rising trendline against the broader downtrend. At the same time, a descending resistance line from the recent swing high continues to limit price, creating a tightening margin.

The immediate supply is around $2.2K, where the last crisis occurred, while the nearest demand is still $1.8K. With the price hovering around $1,960, Ethereum appears to be consolidating between these two zones. A breakout above $2.2K on the 4-hour chart would signal a short-term bullish continuation towards $2.4K, while a breakout below $1.8K would likely negate the consolidation scenario and resume the dominant bearish trend.

Overall, the structure remains bearish on longer terms, but in the short term Ethereum is compressing between the $1.8K demand and $2.8K supply, and the next impulsive move will likely come from a decisive breakout of this range.

Sentiment analysis

The ETH liquidation heatmap over the past six months provides critical confirmation of the bearish technical structure. A significant concentration of liquidity has built up around and just below the $2K level, which has recently acted as a strong price magnet. The sharp sell-off in this area confirms that downward liquidity has been actively targeted, resulting in a large flow of leveraged long positions.

Despite this liquidation event, the heatmap still shows residual liquidity pockets slightly below current price levels, indicating that the market may not have fully exhausted its downside targets. These remaining clusters will continue to pull prices, especially if spot market demand remains weak and derivatives positioning recovers too quickly on the long side.

That said, the intensity of liquidations around the $2K zone suggests that a significant amount of forced selling has already occurred. This reduces the immediate liquidation pressure and explains the short-term stabilization after the decline. However, from a chain perspective, this behavior supports consolidation or corrective rebounds, not a confirmed trend reversal, unless liquidity stakes decisively move back above current levels.

In summary, the on-chain data closely matches the technical picture: Ethereum is still operating in a bearish, liquidity-driven environment, with downside risks remaining active as long as the price fails to regain key supply zones and attract sustained demand in the spot market.