Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The cryptocurrency market finds itself at a compelling crossroads, and Ethereum has once again returned to a pivotal on-chainsupport zone that has historically marked major turning points in its market cycle. With ETH now pressing against this same support, the market is exhibiting a strong reaction that could confirm the integrity of the long-term trend. Why This On-Chain Support Zone Defined Ethereum Recovery
Ethereum’s price is sitting right on top of its most important on-chain support, and the behavior around this level is exactly what occurs before a big reversal. A popular crypto news site, CryptosRus, has revealedon X that the ETH price sharply dropped to $2,870 earlier today, only to bounce instantly after Nvidia’s earnings lifted the entire market. CryptoRus highlighted that this bounce isn’t the real story, but the level at which it happened is. Related Reading Ethereum Is Sitting On Its Most Critical On-Chain Support Level — A Rally Emerging? 6 hours ago
Presently, the $2,800 zone is a strong on-chain floor for ETH. This is because the level lines up perfectly with the realized price of both retail and whales. These are the same zones that have marked the ETH bottoms in every past cycle, and ETH just tapped it perfectly.
The classic signature of a bottom-zone behavior is that small wallets are in panic, while big wallets are buying in silence. Meanwhile, the on-chain rotation data has clearly shown that retail holders are selling, while whale investors holding 10,000 ETH and above are steadily loading up. A clash between whale and retail BTC investors | Source: Chart from CryptoRus on X
A similar sentiment has been detected in the liquidation data. Long liquidations are barely moving on each new low, which means that the forced sellersare gone and the short sellers have been piling in aggressively. That’s the perfect setup for a squeeze.
According to the expert, ETH didn’t just dip; it slammed into a major on-chain support, as large investors bought it up with conviction. Meanwhile, retail dumped it in panic, shorts crowded it, and now even a small bouncecan trigger the fireworks. Historical Patterns Suggest A Reset Precedes The Next Expansion
Ethereum had just repeated the identical liquiditypattern that occurred at the last two major bottoms, and it happened almost in the same week. An analyst known as Milk Road has statedthat every single major ETH reversal started with a full liquidity reset. Related Reading Ethereum Price Uphill Battle Continues as Sellers Hold the Advantage 21 hours ago
As that same liquidity reset occurs again, that’s when the ETH pricebegins its next massive expansion leg, which is exactly the setup ETH is currently in. In the meantime, the next phase will depend entirely on how quickly the market depth can be rebuilt. ETH trading at $3,008 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Freepik, chart from Tradingview.com