ETH Risks Drop to $2,000 Unless It Clears $3.4K–$3.6K Resistance
Ethereum (ETH) remains in a corrective phase beneath a long-term descending trendline and below the 100- and 200-day moving averages. Daily resistance sits at $3,400–$3,600; a sustained daily close above this zone with strong volume is needed to invalidate the downtrend. Shorter-term action shows ETH trading inside a rising corrective channel within the larger downtrend, but repeated rejections near $3.3K–$3.6K and a recent breakdown of the channel’s lower boundary suggest accelerating downside momentum. Key near-term support is $2,600–$2,800 (previous demand zone and the origin of the prior bullish impulse). On-chain liquidation heatmaps show dense short-liquidation clusters above $3.4K–$3.7K and comparatively thinner long-liquidation clusters below, with the next notable liquidity cluster around $2,600–$2,700. The later report adds that there is also a large, largely untested liquidity cluster near $2,000; analysts warn a liquidity-driven sweep toward $2,000 could occur to clear long leverage and reset funding before a durable bullish structure can form. For traders: monitor the $3.4K–$3.6K resistance for confirmation of a bullish reversal; failure to reclaim that zone keeps downside risk intact and raises the probability of a liquidity sweep toward the $2K area, which would likely trigger forced liquidations and elevated volatility. Keywords: Ethereum, ETH price, technical analysis, liquidity, market risk.
Bearish
Both summaries describe ETH trading under a long-term descending trendline and below key moving averages, with a clear resistance band at $3.4K–$3.6K that must be reclaimed to signal a structural bullish reversal. Short-term price action shows repeated rejections and a breakdown of a corrective channel’s lower boundary, implying accelerating downside momentum. On-chain liquidation maps point to concentrated liquidity below (notably at ~$2.6K and a larger, largely untested cluster near $2,000), increasing the likelihood of a liquidity-driven sweep if upside resistance holds. For short-term traders this raises probability of further downside, stop-hunts and elevated volatility as leveraged long positions are flushed. For medium- to long-term holders, a drop that clears leverage and funding imbalances could set the stage for a cleaner recovery, but only after price re-establishes support and reclaims the $3.4K–$3.6K zone with conviction. Taken together, the immediate bias is bearish until evidence of a sustained breakout appears.