Ethereum Sweeps All The Liquidity Below $2.1K – Time For A Comeback?

Ethereum has experienced a massive price surge, jumping from the $2,200 level to $2,500 in just a few hours. This comes after a period of extreme selling pressure that saw ETH drop as low as $2,080 on Friday, leading analysts to expect further declines. However, the market quickly reversed following a major announcement from President Trump regarding a U.S. Crypto Strategic Reserve, which includes Ethereum.

This unexpected news triggered a strong reaction across the crypto market, with ETH reclaiming key levels and fueling optimism among investors. The move has shifted sentiment, as traders now speculate on whether Ethereum can continue its rally toward the $3,000 mark.

Top analyst Daan shared a technical analysis on X, explaining that ETH swept all liquidity below $2,100 before bouncing sharply from that point. According to Daan, this move was significant, as Ethereum absorbed the sell-side liquidity and now continues its bullish momentum following Trump’s announcement.

With ETH reclaiming strength, investors are closely watching key resistance levels to see if the rally can continue. If Ethereum holds above $2,500, a further move higher is likely. However, the market remains volatile, and bulls must sustain momentum to confirm a full recovery.

Ethereum Prepares To Move

Ethereum has been facing relentless selling pressure and negative sentiment, leading to heightened speculative activity that leans bearish in the short term. Since late December, the price of ETH has plunged nearly 49%, leaving investors in despair as they await a recovery. The market has struggled to find a strong base for a reversal, with analysts warning that if Ethereum fails to reclaim key levels soon, further downside could follow.

However, yesterday’s rebound has sparked renewed optimism among traders who anticipate a fast and aggressive recovery. Ethereum’s sudden surge from the $2,200 level to $2,500 caught many by surprise, especially after the market-wide downturn that saw ETH dip as low as $2,080 on Friday. This price movement coincided with President Trump’s announcement of a U.S. Crypto Strategic Reserve, which included Ethereum.

Daan’s technical analysis on X highlights that ETH swept all liquidity below $2,100 before bouncing sharply. According to him, this move confirmed that Ethereum had absorbed sell-side liquidity and was poised for continuation. He also noted that ETH is currently in a neutral zone, stating, “We’re in the middle of nowhere as we speak, but that $2.8K level remains important if we revisit it later.”

Ethereum’s next steps will determine whether this recovery gains momentum or fades into another consolidation phase. If ETH pushes toward the $2,800 mark and holds above it, bullish momentum could accelerate. However, if the price struggles to sustain its gains, another round of selling pressure could emerge. Investors remain cautiously optimistic, closely watching Ethereum’s ability to break through resistance and confirm a new uptrend.

Price Struggles Below $2,500

Ethereum is currently trading at $2,350 after experiencing intense selling pressure over the past few days. Despite the recent bounce, the price continues to struggle below the critical $2,500 resistance level. Bulls have been unable to confirm a recovery rally, as ETH remains trapped within a range of uncertainty.

If Ethereum can reclaim the $2,500 mark and hold above it in the coming days, a strong rally could follow. Breaking past this resistance would open the door for a push toward the $2,800 level, which analysts see as a key price target. However, failure to break above $2,500 could leave ETH vulnerable to further downside, especially if bearish sentiment continues to dominate the market.

On the downside, losing the $2,200 support level could trigger another wave of selling pressure. If ETH drops below this mark, it could lead to a deeper correction, with the next major demand zone sitting around the $2,000 level. Investors remain cautious, watching for signs of either a breakout or another leg down. In the short term, Ethereum’s price action will largely depend on whether bulls can generate enough momentum to push ETH back above $2,500 and confirm a sustained recovery trend.

Featured image from Dall-E, chart from TradingView