Ethereum price is testing a key confluence support zone around the 0.618 Fibonacci level, and bullish volume improvement suggests a potential reversal may be developing.
summary
- 0.618 Fibonacci and Value Area Low Form Key Support Zone
- Bullish volume emerges, suggesting potential for accumulation
- If the reversal is confirmed, the resistance level at $2,286 will become an upside target.
Ethereum ($ETH) The price trend entered a decisive technical area after a prolonged correction phase pushed the asset towards the support of the higher time frame. Under sustained selling pressure, $ETH is currently trading within a major confluence zone that has historically attracted demand and often acts as the linchpin of market reversals.
Recent behavior indicates stabilization near support rather than a continued decline in acceleration. This change has caught the attention of traders who are watching for early signs of accumulation. Once the price approaches a major Fibonacci retracement level with strong structural support, the potential for an upward rotation begins to increase if buyers continue to defend the area.
Important technical points of Ethereum price
- 0.618 Fibonacci retracement coincides with major supportcreating the possibility of reversal.
- Support for the low price range of the value area and the high price range of $1,826 converge.demand zone reinforcement
- A bullish volume reaction appearssuggesting an early accumulation behavior
ETHUSDT (4H) chart, source: TradingView
Ethereum is currently trading around $1,826, a level reinforced by multiple technical factors. The 0.618 Fibonacci retracement, often referred to as the “golden ratio” in technical analysis, lies directly within this region. Historically, this level often acts as a turning point during a correction within a broader trend.
The importance of this area is amplified by its overlap with the value area low, which represents the lower bound of fair value within the previous trading range. When prices re-enter such zones, markets often attempt to rebalance as buyers and sellers reassess values.
This confluence transforms the region into a high-probability reaction zone rather than an arbitrary support level.
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Liquidity sweeps can cause reversals
The key dynamic revolving around this support is the presence of quiescent liquidity below recent lows. The market typically clears liquidity below major support before changing direction. Such moves allow larger participants to accumulate positions while forcing weaker hands out of the market.
If Ethereum briefly trades below support and quickly regains support, the move could resemble a swing failure pattern (SFP), a classic reversal setup. This type of price movement often indicates that selling pressure is being absorbed and demand is starting to outstrip supply.
The emergence of bullish volumes during these tests is particularly important as it indicates that buyers are actively entering the market rather than passively stabilizing.
Bullish volume suggests accumulation
One of the more constructive developments is the gradual increase in bullish volume around support. Increased buy-side participation at key technical levels is often preceded by increased rotation.
Volume behavior often acts as confirmation of intent. While the momentum indicators start to stabilize, the market moves from the distribution phase to the accumulation phase as buyers appear on the support of the higher time frame. Ethereum’s current configuration reflects an early sign of this transition.
However, verification is still essential. To test the reversal theory, sustained buying intent must continue to protect the support region.
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Upward rotation targets higher resistance
If Ethereum manages to hold the $1,826 support cluster, attention will shift to the higher resistance zone. The first major target is near the high of the value area where the price was previously facing rejection.
Above that, the higher time frame resistance near $2,286 becomes the next technical target. A rotational move towards these levels would imply a recovery within a broader trading structure rather than an immediate trend reversal.
These moves often develop gradually, starting with stabilization, followed by higher lows and increasing bullish momentum.
Market structure at a turning point
From a market structure perspective, Ethereum is still at an inflection point. While the broader correction has not yet invalidated the long-term structure, support needs to continue to be defended to prevent further downside continuation.
The combination of Fibonacci confluence, liquidity dynamics, and volume improvement creates favorable conditions for a reversal attempt. Nevertheless, failure to sustain the region will again raise risks towards lower support levels.
What to expect from future price trends
From a technical, price trend, and market structure perspective, Ethereum is at a potential tipping point. A break above the 0.618 Fibonacci support near $1,826 significantly increases the chances of a higher rotation.
In the immediate short term, traders should watch for volume expansion and price acceptance above support. A confirmed failure of the swing or a strong bullish reaction could initiate a move towards the higher resistance zone starting from the high of the value area and towards $2,286.
Until proven otherwise, Ethereum appears to be moving from rectifying weaknesses to stabilizing. If demand continues to rise at current levels, the market could be poised for a rebound from the recent decline.
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