Ethereum remains under pressure in a key support area, teetering between a potential recovery and further decline. As bullish patterns such as the cup-and-handle and the ascending triangle take shape, confirmation is required before a decisive move takes place.
Last Defense Zone: $2,274 – $2,104 and the Libra Reversal setup
Kamile Uray shared which Ethereum is currently trying to keep above the critical support zone between $2,775 and $2,623. This area has become a key battleground for bulls and bears, with buyers trying to defend it to avoid further negative consequences. If this support holds, ETH could regain near-term stability and make another attempt to move higher.
On the upside, a sustained rebound from this zone could allow Ethereum to revisit the pink box resistance around the $3,445 level. A clear break above this resistance would activate bullish structures such as a cup-and-handle or an ascending triangle, which would signal growing bullish momentum and open the path to the $3,894 level. However, this becomes possible if ETH manages to close above the $3,661 peak, confirming the formation of the first major high.
The $3,894 level has technical significance as it represents the 0.618 Fibonacci retracement of the most recent downward wave. A decisive close above this level would indicate a continuation of the recovery. However, failure to stay above it could lead to renewed selling pressure and another corrective move lower.
On the other hand, if Ethereum loses the support at $2,623, a deeper decline towards the pink box zone between $2,274 and $2,104 would become likely. This area is notable for the possible formation of a bullish Libra pattern. Should confirmation of the reversal emerge from this zone, ETH could attempt another recovery phase, with the broader objective of retesting the previous highs.
Waiting for confirmation: ETH’s next move depends on price action
Ethereum is currently following the trajectory that Crypto Candy recently outlined update at Should this upward momentum continue, the immediate target for bulls is a return to the $3,070 level.
However, for Ethereum to firmly re-enter bullish territory and change the broader market structure, it must close decisively above the $3,070 threshold. This level serves as the main gateway for any sustainable recovery after the current relief rally. Until that breakout occurs, the prevailing market bias remains firmly bearish, as the inability to reclaim and hold $3,070 suggests that the path of least resistance is still down, with lower prices remaining the main near-term expectation.