With reduced liquidity and a fragile rebound, Ethereum’s price movement indicates increased downside risk, increasing the likelihood of a deeper rotation towards lows in the $900 range.
summary
- Short-term rebound lacks confidencesuggesting that the rally may be corrective rather than trend-changing
- Liquidity dynamics favor downtrendsclean lows are still attracting prices
- Volatility may increasewhen the balance is out of whack and prices seek deeper tolerance levels.
Ethereum ($ETH) Price continues to trade in a vulnerable position, wandering around an important support zone known as the Point of Control (POC). Short-term relief bounces are emerging on shorter time frames, but these moves lack meaningful bullish follow-through. As a result, Ethereum remains under further downward pressure, especially as untested liquidity continues to build below current price levels.
From a broader market structure perspective, the ongoing consolidation looks less like an accumulation and more like a pause before continuing. The risk of further correction moves below $1,000 remains unless buyers decisively regain control.
Important technical points of Ethereum price
- Ethereum is traded on control pointsan important balance level
- A small amount of bounces indicates weak demandincreasing the risk of bull trap
- Untapped liquidity is below the low of the rangedownside probability increases
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ETHUSDT (1W) chart, source: TradingView
Ethereum’s recent pullback from its control point was shallow and short-lived. On lower time frames, prices are showing temporary stability, but these movements are not supported by strong bullish volume. In trending markets, a sustained reversal typically requires increased participation and aggressive buying, neither of which currently exists.
This type of weak rebound often signals a possible bullish trap, where prices briefly rise before reversing the prevailing trend and restarting. Unless Ethereum can confidently reclaim higher resistance levels, any short-term pullback remains vulnerable to rejection.
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Below-price liquidity remains unresolved
One of the most important factors influencing Ethereum’s downside risk is the existence of untapped liquidity below the current price level. A clean low remains below the market, suggesting stop-loss orders and remaining sell-side liquidity are concentrated below the support.
Markets naturally gravitate toward areas of liquidity, especially in correctional or range-bound situations. Until this liquidity is addressed, Ethereum will remain susceptible to rotational downsides designed to purge weak positioning and rebalance the market structure.
Increased risk due to loss of control signals
Control points represent price levels where the most trading activity takes place and often act as a stabilizing force during consolidation phases. However, when the price loses POC on a closing price basis, it typically signals a transition from balance to imbalance.
If Ethereum definitively loses this level, the move is likely to accelerate. In this context, that likely means a capitulation-type rotation as prices seek the next major acceptance area. Historically, such movements tend to be quick and volatile, especially when liquidity below price is untested.
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Focus on low prices in the $900 range
From a higher timeframe perspective, the next major downside objective lies around the $900 level. This zone coincides with the low of the value area and the lower bound of Ethereum’s broader trading range. Previous interactions with this region resulted in strong responses, making it an important region for potential stabilization or reversal.
A move towards $900 is likely to coincide with increased volatility and emotional selling, which are common characteristics of capitulation events. While such a move may seem bearish in the short term, it could ultimately serve as a necessary reset before a more sustainable foundation is formed.
What to expect from future price trends
From a technical, price volatility, and market structure perspective, Ethereum remains at risk of trading below $1,000 if current support fails.
The combination of a weak rebound attempt, unresolved liquidity, and a possible loss of control points favors a downside continuation towards the $900 lows.
For this outlook to improve, Ethereum will need to regain control with strong volume confirmation and demonstrate acceptance in higher value areas.
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