Ethereum is showing classic post-crash behavior: after a violent sell-off, price action has slid into sideways consolidation as liquidity is gathered on both sides of the market. Key context - ETH recently slipped below its long-term swing low at $2,111 (set in June 2025). Over the past 10 days that level has flipped to resistance, repeatedly repelling bullish attempts to reclaim it. - On-chain and exchange signals point to a mixed but telling picture: large whale deposits to centralized exchanges and a falling taker buy-sell ratio indicate sellers have been in control of execution, while a sustained decline in exchange reserves and record-high staking inflows show supply is being locked away by long-term holders. - In short, short-term selling pressure exists, but capital is consolidating into fewer, higher-conviction hands — a dynamic that reduces rapid distribution capacity and can amplify a future move when sentiment turns. Technical and market-read indicators - Momentum/flow: On-Balance Volume (OBV) has been making lower lows and lower highs since October — a hallmark of a downtrend. The MACD remains below zero, though a recent bullish crossover mirrors the last 10 days’ attempts to push above $2.1k. - Liquidations: A 3-month liquidation heatmap shows a large cluster at $3.4k–$3.8k (too distant to act on immediately). Closer “magnetic” zones have formed at $1.55k–$1.7k and $2.15k–$2.55k. - Supply/distribution: ETH moving into staking contracts has hit an all-time high, and exchange reserves are down — both signs of capital being sidelined into long-term positions. What traders should watch - Immediate resistance: ~$2.1k (local). Overhead supply cluster: $2.5k–$2.75k. - Likely near-term range: consolidation between roughly $1.8k–$2.1k is the most probable path before any decisive move. - Scenarios: a drop toward $1.55k–$1.7k would likely present a meaningful longer-term buying opportunity, though that zone should not be assumed to be the absolute market bottom — outcomes will also hinge on Bitcoin and broader macro conditions. A rally back to ~$2.5k in the next month or two is possible but could trigger another bearish reaction given the heavy supply overhead. Big-picture takeaway ETH looks “compressed like a spring”: sellers have dominated recently, but shrinking exchange liquidity and rising staking suggest capital consolidation. If macro conditions and risk appetite recover, that built-up pressure could release into a sizable upward move. Until then, traders should be patient and respect the prevailing bearish structure. Sources: AMBCrypto, TradingView (ETH/USDT), CoinGlass. Disclaimer: This summary is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. Read more AI-generated news on: undefined/news

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