Is It Time to Buy Ethereum?

Following Trump’s latest tariff announcements, multiple asset classes have experienced sharp declines, and the cryptocurrency market has been no exception. With major digital assets facing significant losses, we analyze the current market landscape for Ethereum and outline what to expect in the coming week.

Weekly time frame analysis

ETHUSD - 1 Week Time Frame

From a technical perspective, Ethereum is currently seeing a substantial accumulation of Sell-Side Liquidity. Monday morning’s sharp price drop has intensified this process, yet the price has not fallen below key internal lows, where large liquidity pools are concentrated.

In simple terms, long-position traders with Stop-Loss orders placed below these levels have not yet been liquidated, as the price has remained above these critical points.

Additionally, each decline has led to a further increase in Stop-Loss accumulation, as many traders perceive this price stability as strong support, prompting them to enter additional buy positions.

Ethereum price target

From our perspective, relying on support zones for buying opportunities is a risky and unsustainable strategy, especially in a market that moves to absorb liquidity. Given these conditions, we anticipate a continuation of the bearish trend as the market seeks to accumulate liquidity.

This process is essential, as a high volume of Sell Stop orders requires counterparty buy orders, enabling institutional and commercial participants to enter the market.

Just below the identified support zone—labeled as Sell-Side Liquidity in the attached chart—lies a key Order Block and an additional support zone. Unlike conventional support levels, this zone is defined using a distinct methodology, making it a significant area for potential market reaction.

However, whether the price will respect these technical zones remains uncertain. From our perspective, long positions will only become valid if the market shows a strong bullish reaction after liquidity is collected. Until such a move materializes, the risk of further downside remains dominant, and traders should approach entries with caution.