Ethereum Leverages Short-Term Momentum at $2,000 Support Zone

Ethereum recently experienced a highly volatile trading session as short-term buying pressure began to increase. However, long-term selling pressure from traders continues to exert a strong influence. According to the latest market data, ETH is trading around $2,150 with a 24-hour gain of +3.73%, indicating a strong recovery compared to previous sessions. Despite this volatility, the price is testing an important psychological support level, while signs of positive momentum are emerging from key technical indicators.

Throughout today’s trading session, Ethereum followed a normal pattern: the price rose toward the $2,060–$2,080 range, then selling pressure appeared, pushing the price below the psychological $2,000 level, but ultimately recovered around $2,020. Although the asset has recorded gains over the past week and 14 days (7 days -6.99%, 30 days +8.26%), on the monthly timeframe, downward pressure remains as the price has declined significantly from previous highs.

Short-term momentum improves, but long-term trend still needs monitoring

From a technical perspective, the situation shows a conflict between short-term demand and long-term selling pressure. The price has now moved above the “crocodile” indicator lines (red line) and the “crocodile’s lip” (blue line), signaling that momentum is shifting in favor of buyers. This crossover is an important sign that short-term bearish pressure has weakened, and Ethereum is attempting to transition from an accumulation phase to a potential recovery phase.

However, a key factor still limiting the upward movement is the long-term moving average (green line), which remains at $2,100, indicating that the overall correction trend has not been fully reversed. To confirm a strong trend reversal, Ethereum will need to sustain a steady breakout above this level. Without such a move, the asset may remain in a long-term accumulation phase.

Technical indicators show positive signals, but confirmation is still needed

Momentum indicators are showing clear signs of improvement. The Stochastic indicator has risen significantly, with %K around 65 and %D near 68, indicating increasing buying interest and traders regaining confidence after a prolonged sell-off. Although not yet in extreme overbought territory, these figures suggest a short-term bullish trend.

If this momentum continues to grow and the price breaks above the moving averages, it could provide further confirmation of the recovery effort. Conversely, if Ethereum fails to surpass resistance levels above, the asset may become trapped in a long-term correction phase, with narrow trading ranges becoming the most likely scenario.

Liquidation data reveals mixed pressures in the derivatives market

Ethereum’s liquidation data shows increased derivatives activity across multiple timeframes, with a clear imbalance between long and short positions. In the most recent hour, total liquidations reached $1.28 million, with long positions dominating ($994,720) compared to short positions ($283,040). This indicates short-term traders are increasing bets on a price rise.

On the 4-hour timeframe, total liquidations hit $4.92 million, with longs accounting for $2.88 million and shorts $2.04 million, suggesting lighter pressure on longs. However, on the 12-hour timeframe, the picture is more complex: short positions ($9.68 million) exceed longs ($6.38 million), implying previous upward moves may have forced traders to liquidate short positions.

Over the entire 24-hour period, total liquidations reached $67.11 million, with longs at $39.73 million and shorts at $27.38 million. This data indicates a relatively balanced struggle between traders, though longs still hold a slight edge.

Outlook and recommendations

Ethereum is at a critical juncture. Short-term momentum is improving, and the psychological support at $2,000 remains intact, providing a foundation for a potential rebound. However, to confirm a strong trend reversal, the asset needs to break through long-term resistance levels and sustain this positive momentum. What happens in the upcoming trading sessions will be crucial.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed may include personal views and do not reflect the official stance of any organization. Readers are encouraged to conduct thorough research before making any investment decisions.