Bitcoin has recently closed above a key resistance zone, signaling a potential continuation of the broader bullish trend. However, on a wider market scale, the bearish price delivery remains active for the time being. A similar technical situation has developed in Ethereum, prompting a closer examination of its current structure.

Several potential scenarios are now in play, creating a degree of uncertainty. The key is to identify the factors that could shape Ethereum’s next significant move.

Ethereum technical analysis

ETHUSD - 1 Day Time Frame

The main factor currently influencing Ethereum’s behavior is market liquidity. During the recent market-wide correction, numerous Sell Stop orders were triggered, leading to an estimated $19 billion in cumulative liquidations across derivative markets. Following this phase, Ethereum entered a slower accumulation period characterized by controlled and range-bound price movements.

The most relevant liquidity levels are marked on the chart with horizontal lines, showing both Buy-Side and Sell-Side Liquidity. These levels represent areas where price activity could intensify as the market seeks to rebalance order flow.

Ethereum price target

Two primary scenarios are possible based on Ethereum’s recent structure. A downward movement could occur if the market first targets the Buy-Side Liquidity within the orange zone. Conversely, a potential bullish continuation could begin only after the Sell-Side Liquidity has been collected — two critical levels of which are highlighted on the chart.

The lower level of these two aligns closely with the 0.5 Fibonacci retracement drawn from the April low to the August high, a technical zone that often attracts institutional market participants.

A confirmation of a bullish shift could occur if the price closes above the point marking the beginning of the bearish price delivery on the daily timeframe. Such a close would signal a potential change in market structure and renewed bullish momentum.

At this stage, the overall setup remains undecided, with both bullish and bearish outcomes still possible. For now, market participants could monitor how Ethereum reacts around these liquidity levels to determine whether either scenario gains confirmation.

A clear technical signal will be necessary before any sustainable trend direction becomes apparent.