Ethereum is showing early signs of strength after briefly dipping to the $2,880 zone—a level many analysts had been watching closely. The move filled a previously noted Fair Value Gap (FVG), and since then, ETH has managed to stay above important support areas, sparking fresh discussion about whether the market could be gearing up for another leg higher.
Over the past few sessions, Ethereum has pushed back into key short-term ranges, erasing any bearish gaps that technical traders were tracking. Market analysts say the cryptocurrency is now sitting on two significant support levels that line up with major Fibonacci retracement zones. These areas are being viewed as potential accumulation points, especially for traders who expect ETH to move higher in the coming weeks.
Despite a small daily pullback, Ethereum’s mid-term structure still looks promising, according to chart watchers. One of the bigger patterns gaining attention is a developing inverse head-and-shoulders formation on the 3-day chart. The neckline, which sits just above the current price and slightly slopes upward, is now a key point to watch. A confirmed breakout could open the door to a notable upside target based on the pattern’s depth.
Some analysts are also zooming out to focus on broader levels that have been tested repeatedly over the last two years. High leverage in the market adds another layer of complexity, meaning ETH could be prone to fast, sharp moves in either direction depending on how the next catalyst unfolds.
On-chain indicators add another interesting angle. Ethereum recently sank to a level that matches the realized cost basis for both retail participants and large holders—an area that has acted as a cycle low in previous downturns. Blockchain data shows whales have quietly been accumulating again, while smaller wallets appear to be reducing their exposure. Derivatives metrics also suggest a shift in sentiment: long liquidations have slowed, while short positions are climbing.
Traders also noted that Ethereum’s latest daily candle closed with a long lower wick, hinting that buyers stepped in aggressively near the low. The next battle zone sits just overhead at a short-term resistance area. Holding above it could open up continuation toward higher ranges, while rejection may keep ETH moving sideways.
Analysts warn that upcoming U.S. labor data could inject fresh volatility into the market—primarily through Bitcoin, which often sets the tone for broader crypto movements. For now, though, Ethereum seems to be settling into a liquidity-building phase, with several indicators suggesting that $2.8K may prove to be a meaningful bottom.
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