The price of Ethereum has remained largely stagnant since mid-May. For several weeks, price action has been confined to minor fluctuations. Each attempt to rally has been followed by a swift pullback, erasing short-term gains.

However, recent technical analysis has identified two key zones that could potentially break this pattern and indicate the conclusion of the ongoing correction. Which levels could be worth monitoring, and how might one prepare for either outcome?

Ethereum technical analysis

ETHUSD - 1 Day Time Frame

This analysis is based on technical indicators. In Ethereum’s case, a key initial observation is the recent sweep of Sell-Side Liquidity. Market corrections are often accompanied by the accumulation of Sell-Side Liquidity just below local lows and Buy-Side Liquidity just above local highs.

These zones typically attract institutional or commercial activity, as such participants require elevated liquidity to establish large positions.

Given this behavior, it is plausible that recent buying activity from commercial entities has occurred following the Sell-Side Liquidity sweep. However, for retail participants, this factor alone may not constitute a reliable entry signal. As noted earlier, further observation is required to assess how the price reacts around the identified key zones.

The resistance zone, which currently appears to act as a ceiling following the liquidity sweep, is highlighted in orange. Conversely, the support zone, which could serve as a potential floor, is marked in blue.

Ethereum price target

In the coming days, attention could be given to whether a daily close occurs above the resistance zone or below the support zone. Such price action may offer confirmation of directional momentum.

A daily close below the support zone could potentially signal a valid sell setup, with a downside target aligning with the next identifiable Sell-Side Liquidity levels. Alternatively, a close above the resistance zone may suggest a bullish breakout scenario, opening the possibility of targeting the next Buy-Side Liquidity zone.

As always, market participants are advised to consider broader conditions and confirm signals with additional indicators before taking action.