Ethereum (ETH) experienced a severe drop, with its value declining by more than 30% between Friday and Monday, and investors suffered losses of over $1.2 billion. The crash was initiated by market-wide sell-offs that followed U.S. President Donald Trump’s imposition of tariffs on Mexico, Canada, and China, which caused massive liquidations in the crypto market. Despite the bearish sentiment, Ethereum is showing signs of recovery, with whales buying the dip and the price rebounding near a historically strong demand zone between $2,200 and $2,600. Technical indicators, including the RSI and Stochastic Oscillator, suggest growing buying pressure, increasing the likelihood of ETH reclaiming the $2,817 key support level and potentially aiming for the $3,000 psychological mark.
KEY LOOKOUTS
• Ethereum is looking to recover the $2,817 support level after bouncing off $2,110, and increasing buying pressure may push the price towards $3,000.
• Big investors are buying the dip as a whale wallet bought more than 50,000 ETH, which shows confidence in the long-term recovery of Ethereum.
• U.S. trade policies, especially Trump’s tariffs on Mexico, Canada, and China, caused market-wide losses that influenced the recent volatility and price swings of ETH.
• RSI and Stochastic Oscillator are rebounding from oversold levels, which means that buying interest is increasing, thereby raising the probability of ETH to hold support in the range of $2,200-$2,600.
Ethereum’s recent price crash, caused by the general market volatility because of U.S. tariffs on Mexico, Canada, and China, resulted in over $1.2 billion in investor losses. There are recovery signs, however, as whales start to accumulate ETH. There’s a whale wallet, which has bought over 50,000 ETH, indicating it is long-term confidence. The RSI and Stochastic Oscillator technical indicators are showing buying pressure is increasing and should help ETH recover from the $2,817 support level. If the momentum keeps on, Ethereum may target the psychological mark of $3,000. Demand in the area of $2,200-$2,600 can become a strong support point.
Ethereum seems to be making a recovery after a sharp decline, with whales accumulating ETH and technical indicators suggesting rising buying pressure. If momentum holds, ETH could reclaim the $2,817 support level and aim for $3,000, with strong demand between $2,200 and $2,600 stabilizing the price.
• Ethereum declined over 30% between Friday and Monday, as investors realized $1.2 billion in losses due to market-wide sell-offs.
• The price crash is being cited as the U.S. President Donald Trump’s tariffs on Mexico, Canada, and China that increase liquidation across the crypto market.
• Big investors are buying the dip, including one whale wallet buying over 50,000 ETH in a sign of confidence in Ethereum long-term recovery.
• ETH found fantastic support between $2,200 and $2,600: That is historically high-demand zone where more than 50% of the ETH in circulation was bought.
• RSI and Stochastic Oscillator recovering from oversold levels suggest increasing buying pressure and a possible price rebound.
• If momentum holds, ETH could reclaim the $2,817 key support level and aim for the $3,000 psychological mark.
• Despite short-term stagnation concerns, resolution of Mexico’s tariff situation and whale accumulation could drive ETH’s recovery in the coming weeks.
Ethereum has just endured a heavy correction as it falls more than 30% within days, meaning investor losses topped $1.2 billion in a few short days. Its sell-off stemmed from the implementation of new U.S. President Donald Trump’s tariffs on Mexico, Canada, and China to protect America’s borders and potentially kick-start the world trade war. It witnessed liquidations as massive as more than $620 million in ETH futures positions are being erased. Despite the bearish mood, Ethereum had strong support at $2,200 and $2,600, a historically high-demand zone where most of the circulating ETH was bought beforehand. A whale wallet also purchased more than 50,000 ETH after the crash, which shows confidence in a rebound in the market.
ETHEREUM Daily Chart
TradingView Prepared by ELLYANA
RSI and Stochastic Oscillator, both are recovering from oversold levels, indicating rising buying pressure. Ethereum is currently looking to retake the key support $2,817 level and if momentum continues, the cryptocurrency may be able to break toward psychological resistance at $3,000. On-chain analysis supports that further upside potential within this recovery also as whale accumulation stabilizes the market. Short-term consolidation remains plausible; nonetheless, since Mexican President Claudia Sheinbaum and Trump have resolved tariffs, investor confidence may return. If positive momentum sustains, Ethereum may soon regain its strength, setting the stage for a broader market recovery.
TECHNICAL ANALYSIS
Ethereum’s technical analysis suggests a potential recovery, with key indicators signaling increasing buying pressure. The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have rebounded from oversold levels, indicating a shift in market momentum. ETH has tested a historically strong demand zone between $2,200 and $2,600, where over 50% of its circulating supply had been built up earlier. In the event that Ethereum reclaimed the support at $2,817, it may reverse bullish and push prices to $3,000 psychological resistance. Besides the breakdown of H&S pattern below the recent dip confirms it. A prolonged bounce from the current support levels would invalidate further downside risks. Chain data also supports whale accumulation for the recovery to be smooth in the next coming sessions.
FORECAST
Ethereum are reporting stronger buying pressure ahead in the Ethereum’s price recovery. Therefore, if ETH successfully breaches the key support $2,817 and sets the stage for a bullish breakout to $3,000; this will be a critical psychological resistance. In fact, whale accumulation as seen in recent on-chain data further support this case of recovery. The resolution of the tariff issue in Mexico could also positively affect the overall market sentiment, making more institutional and retail investors re-enter the market. If the trading volume increases and ETH maintains stability above $2,800, it may lead to a steady uptrend, with the next resistance levels at $3,200 and $3,500 in the medium term.
Ethereum still faces short-term risks that may lead to further price fluctuations despite the bullish signs. If ETH is unable to take back $2,817, it may test the $2,400 zone again, an area where significant buying interest had been seen earlier. The cryptocurrency market at large is still unstable, given several macroeconomic drivers, such as the threat of increased U.S. tariffs and Federal Reserve money-printing. Moreover, reduced ETH market dominance and transaction volumes indicate that Ethereum may not see a quick reversal in the immediate future. If bearish pressure is increased further, ETH could test the $2,200 support line again. However, in case of increased selling pressure, it could see a worst-case decline towards $2,000.
