Is $1.8K the bottom? ETH Reaches Critical Demand Zone (Ethereum Price Analysis)

Ethereum remains under heavy bearish pressure, with recent price action confirming a continuation of the broader downtrend. The market is currently reacting to a major sell-side expansion, and both the technical structure and on-chain liquidity dynamics indicate that the asset is still moving through a critical phase where downside targets remain relevant even if a near-term recovery occurs.

Ethereum Price Analysis: The Daily Chart

On the daily time frame, ETH is clearly trading within a well-defined descending channel, with the price recently accelerating towards the lower bound of this structure. The key observation on the chart is the clear breakdown below several previous support levels, followed by a sharp impulsive move lower. This move confirms strong bearish acceptance rather than a simple liquidity clearing.

The asset has now reached a key higher-frame demand zone, located around the $1.8K region, which previously acted as a base during previous accumulation phases. The response from this zone has caused a modest rebound, but so far this step lacks structural strength and remains corrective in nature.

Nevertheless, the market is likely to enter a consolidation-correction phase above this crucial support until a decisive breakout occurs. The main supply zone during this consolidation range is the centerline of the channel, located at the $2.3K threshold. A break above this resistance will open the door for an extended bullish retracement towards the significant resistance at $2.5K.

ETH/USDT 4-hour chart

If we zoom in on the four-hour time frame, the bearish structure becomes even clearer. The latest price action shows a sharp sell-off in demand, followed by a shallow rebound that is not followed by an impulsive follow-up.

Crucially, the recovery appears corrective and technically opens the door for a pullback towards the latest supply zones and Fibonacci levels, located around the $2.3K to $2.6K region. These areas match previous levels of breakdown and correspond to zones where sellers previously intervened aggressively. If the price returns to these levels without strong volume or momentum, they will likely act as rejection zones rather than breakout points.

Until Ethereum can regain and hold these supply areas, the 4-hour structure will continue to favor a continuation of the downtrend or extended consolidation within the lower range, rather than a trend reversal.

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.