Ethereum Price Analysis

Ethereum has experienced a massive drop, losing over 27% of its value in less than five days amid extreme market fear and uncertainty. This rapid sell-off has sparked speculation about a potential bear market, with analysts predicting further declines in the coming months.

Despite the prevailing bearish sentiment, Ethereum may find a chance to recover as it approaches a crucial demand level. If buyers can hold this area, ETH could stage a strong rebound, shifting momentum back in favor of buyers.

Top analyst BigCheds shared a technical analysis on X, highlighting that ETH is nearing a vital monthly demand level, which could define Ethereum’s next major move. Historically, price reactions at this level have led to either strong bounces or further capitulation, making current market conditions pivotal for Ethereum’s long-term prospects.

Ethereum Struggles Below $2,200

Ethereum is currently trading below $2,200, struggling to regain momentum following a severe market-wide correction. The altcoin sector continues to decline, with ETH losing nearly 50% of its value since peaking at $4,100 in mid-December. Bulls face a critical test to defend key demand levels to prevent additional selling pressure and attract strong buying interest.

Market sentiment is highly volatile, shifting toward extreme fear. Investors are concerned that Ethereum could continue its decline if bulls fail to maintain support and initiate a significant recovery. Analysts remain cautious, warning that ETH might enter a prolonged consolidation phase if it cannot regain lost ground.

BigCheds notes on X that Ethereum is re-approaching a high-timeframe demand zone around $2,000. Losing this zone could trigger a deeper correction, while strong defense can pave the way for a potential recovery rally.

The next few days will be critical for Ethereum. A reclaim of $2,200 and a push toward $2,500 could signal a reversal, while failing to hold $2,000 might lead ETH to lower demand zones in the coming weeks.

Price Testing Demand – Can Bulls Regain Control?

Ethereum is trading at $2,120 after experiencing days of massive selling pressure, reaching its lowest level in months. Holding above $2,000—a crucial high-timeframe demand level—is essential to avoid further declines. However, sentiment remains fragile, and failure to hold this level could provoke a dramatic sell-off, leading to even lower prices.

Bulls must urgently regain control of the price action. The $2,200 level is the first key resistance, and breaking above it would be a step toward stabilization. Going beyond that, ETH must push above $2,500 to confirm a potential trend reversal and indicate the beginning of a recovery rally.

If $2,000 support fails, Ethereum could experience heightened volatility and a steep decline, potentially testing lower demand zones. The upcoming trading sessions are crucial, as ETH’s ability to remain above critical levels will dictate whether the market stabilizes or descends into a deeper correction.

Chart from TradingView