The new trading week has opened on a bearish note, with multiple cryptocurrencies once again approaching key local lows. This movement could indicate the accumulation of sell-side liquidity. When a price level has been previously respected, it is often perceived by retail participants as strong support. However, such zones do not always represent lasting stability and may instead serve as temporary stages before a further downward move.

Ethereum technical analysis

ETHUSD - 1 Day Time Frame

Several technical factors currently support the potential for an extended correction in Ethereum. The first is the accumulation of sell-side liquidity below the previously established lows, clearly visible on the accompanying chart.

The second factor relates to the statistical behavior of market structure. After strong impulsive trends—such as the one observed between April and September—it is statistically common for price to retrace toward the 0.5 Fibonacci level. This level represents the midpoint between the Premium and Discount zones, effectively serving as a natural equilibrium.

Given current market conditions, such a retracement appears increasingly plausible. While it remains uncertain whether a reversal will occur immediately after a liquidity sweep, awareness of this possibility is essential, as it could validate a developing bullish accumulation phase.

Another technical element worth noting is the support zone visible on the monthly timeframe, which aligns closely with the 0.5 Fibonacci retracement. On the chart, this area is highlighted in blue.

Ethereum price target

If the price temporarily dips below this equilibrium point into the Discount zone—triggering a cluster of Sell Stop orders before recovering—it could set the stage for a technically favorable scenario. Under such conditions, price could then seek the Buy-Side Liquidity levels on the opposite side of the market, suggesting a potential shift toward renewed bullish activity.