After last week’s macro-driven liquidation cascade, Ethereum has stabilized and is showing early signs of structural recovery. Despite the sharp decline that has swept the crypto market, ETH has managed to protect its key demand zones and is now attempting to regain key levels that will determine whether this rebound develops into a full continuation or remains a temporary, palliative rally.
technical analysis
Written by Shayan
daily chart
On the daily time frame, Ethereum has rebounded strongly from the $3.4 million demand zone, which coincides with the 200-day moving average and the lower bound of the ascending channel that has guided the price since mid-2025. A sharp recovery from this zone confirms that it is high confluence support, while a sharp rally above ETH’s 100-day moving average near $4,000 and an ascending midline trend line suggest that buyers are looking to reassert directional control.
Ethereum currently faces its first major obstacle near the $4.2 million-$4.3 million zone, where the broken market structure coincides with the 0.618-0.702 Fibonacci retracement level from the recent decline. This area will act as a decisive resistance level in the short term. The RSI is also showing a modest bullish departure from oversold territory, reinforcing the possibility of a continued rally if momentum holds.
A close of the day above $4,300 would confirm the strength and pave the way for the $4,6,000-$4,7,000 supply area, while rejection at this level could trigger a retest of the $3,8,000-$3,6,000 range, where buyers would be tested again.
4 hour chart
On the 4-hour timeframe, Ethereum regained the previously broken uptrend line and turned into short-term support following last week’s drop to $3.4,000. The rebound extends to the 0.618 Fibonacci retracement zone ($42,500) and the price is currently consolidating just below the key resistance level at $43,000.
The $4.0,000 to $4.1,000 region serves as the key decision point. While sustaining above this level would confirm structural strength and support the recovery narrative, a loss of this level could invalidate the current bullish setup and re-expose the $3,6000-$3,4000 demand block.
For now, the near-term structure remains constructive, but not confirmed. A sustained break above $4.3,000 would shift market sentiment back to the bullish side, but a rejection could extend the consolidation phase over several sessions as the market continues to absorb volatility.
sentiment analysis
Written by Shayan
The latest one-month Binance liquidation heatmap reveals how last week’s macro-driven selloff reshaped the derivatives landscape. As Ethereum briefly fell below $3.5k, a large liquidation cluster formed between $3.4k and $3.6k, indicating a flashout of highly leveraged long positions. This event acted as a cleansing stage for market positioning, washing out weak longs and resetting both sentiment and funding conditions.
Since this capitulation, the heatmap shows that there is clearly no major liquidity pool below the current price, suggesting that near-term downward pressure has eased. The decline in lower-level liquidation density indicates that the market has effectively deleveraged and paved the way for a more stable recovery phase.
In contrast, multiple dense liquidity clusters have now developed above the price, most notably around $4.8 million to $5000 and again around $5.8 million to $600. These zones correspond to pockets of short-side liquidity and unrealized short exposure, and effectively serve as targets for potential future upside.
If Ethereum maintains its recovery momentum and reclaims the $4.3 million to $4.4 million resistance zone, the market is likely to gravitate toward these upper clusters in an effort to clear out short-side liquidity. Barring a new wave of over-leverage emerging prematurely, Ethereum appears technically positioned for medium-term continuation, with on-chain dynamics supporting a gradual rise towards these higher liquidity targets.
