After a very volatile week, Ethereum’s price appears to be taking a break and trading within a more stable range. Buyers stepped in to prevent a deeper sell-off, but the recovery has struggled to gain real momentum. As the ETH price moves closer to the resistance at $2,157, the buying pressure starts to subside. This has traders keeping a close eye on whether the recent low around $1,754 marked a short-term bottom or if the market is preparing for another move lower.
Ethereum price transitions from survival to recovery mode
A crypto proponent, known anonymously as Wise adviceshared data indicating that the Ethereum price is no longer under serious selling pressure.
- Ethereum is trading around $1,950, below the MVRV band of 0.80, a zone historically linked to peak fear and forced selling. In previous cycles, most of the downside was already priced in when ETH moved into this range, even if the price consolidated afterwards. The MVRV level of 1.0 near $2,450 remains the key recovery signal.
- ETH/BTC remains in a broader downtrend, but selling pressure is clearly easing. The price has a higher timeframe demand zone around 0.029-0.030 BTC, where recovery has occurred before. A recovery of 0.0325 BTC would be the first sign of ETH regaining relative strength.
- Ethereum continues to dominate tokenization, home to over 61% of the market and nearly $200 billion in assets. Even during a market share decline, the value settled on Ethereum continued to rise, indicating that capital remained in the ecosystem despite weak price action.
- ETH exchange reserves have fallen to mid-2016 levels, tightening supply on the sell side. Historically, declining reserves signals have largely completed their distribution during sideways or weak price moves, reducing downside risk and setting the stage for a stronger uptrend once demand returns.
What’s next for the ETH price rally?
Ethereum’s daily chart shows a market that has already suffered a lot of damage and is now testing whether buyers are ready to take action again. After failing multiple times near the $3,200-$3,400 zone, ETH collapsed sharply, crossing a key demand area and causing a quick sell-off to long-term support. The structure clearly reflects distribution at the highest levels, followed by panic-like selling, which often marks the late stages of a corrective move rather than its beginning.
From a price structure perspective, ETH lost the support at $2,800-$2,900, which clearly turned into resistance and accelerated the downward momentum. The current rebound is taking place near the rising long-term trendline around $1,800-$1,850, a level traders will be watching closely for stabilization. The RSI hovering around the low 30s indicates oversold conditions, while the MACD remains bearish but deeply extended, suggesting the selling pressure could be exhausting. A continued hold above $1,820 could open relief towards $2,150-$2,300, while losing this support risks a deeper flush before a meaningful recovery occurs.
The bottom line!
Ethereum is reacting off the long-term trendline of $1,800-$1,850, which is the last meaningful support before a deeper decline. As long as ETH price holds this zone, a near-term bounce towards $2,150-$2,300 remains realistic, but this would still be a countertrend unless ETH reclaims $2,800 on strong volume. If it finally breaks through $1,800, the downside will open towards the $1,600-$1,650 area where buyers previously entered. Until the structure turns bullish, rallies are better viewed as selling, not trend reversals.
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