ETH Technical Outlook: Ethereum Stabilizes After Sharp Sell-Off
Ethereum remains in a broader corrective phase following a strong rejection from higher Fibonacci resistance levels. Although the bearish market structure is still intact, recent price action shows ETH stabilizing above a key demand zone — a sign that selling pressure is starting to ease.
The sell-off was triggered after ETH failed to break above the $4,065 (0.618 Fib) and $4,457 (0.786 Fib) resistance area. This zone repeatedly capped upside momentum and led to a decisive breakdown below all major moving averages, handing full control to sellers.
EMA Structure (Bearish Alignment)
20 EMA: $3,038
50 EMA: $3,220
100 EMA: $3,429
200 EMA: $3,418
All EMAs are stacked above current price, creating a heavy resistance band and confirming ETH is still trading within a bearish technical environment.
Price Action & Support Zone
ETH is currently consolidating above the $2,850–$3,000 demand zone, an area that has consistently attracted buyers. This zone sits just above the Fib 0 level at $2,623, increasing its importance as a downside support.
So far, buyers have defended this region well, preventing further downside. As long as ETH holds above $2,850, a short-term relief bounce remains on the table.
Key Levels for Bullish Recovery
For any meaningful upside or momentum shift, ETH must reclaim the following Fibonacci levels:
$3,174 (0.236 Fib) — early stabilization signal
$3,514 (0.382 Fib) — recovery attempt
$3,790 (0.5 Fib) — major supply zone
A true trend reversal would only be confirmed with a sustained break and hold above $4,065 (0.618 Fib), where sellers previously re-entered aggressively.
Downside Risk Scenario
If ETH loses the current demand zone, downside targets include:
$2,623 (Fib 0 support)
$2,402 (major historical support)
A break below these levels could extend the corrective phase further.
Momentum Check
RSI (14): 46.51
RSI is rebounding from oversold levels, suggesting bearish momentum is weakening — but bullish strength is not yet confirmed.
📊 Key Levels Overview
Resistance:
$3,174 (0.236 Fib)
$3,514 (0.382 Fib)
$3,790 (0.5 Fib)
$4,065 (0.618 Fib)
$4,457 (0.786 Fib)
Support:
$2,850–$3,000 (major demand zone)
$2,623 (Fib 0)
$2,402 (macro support)
📌 Final Takeaway
Ethereum is holding a crucial demand zone after a sharp bearish breakdown. While a short-term bounce is possible, the overall structure remains bearish as long as price stays below the EMA cluster and the $3,500–$3,800 resistance area. Bulls need to reclaim $3,174 to shift momentum, while a loss of support could send ETH back toward $2,623.
