How Vitalik Buterin’s 11,422 ETH Liquidation Is Testing Ethereum’s Bear Market Absorption – Details
Ethereum has faced persistent selling pressure throughout the year, with price action repeatedly failing to reclaim the $2,000 level. Despite intermittent rebound attempts, momentum has remained weak, reflecting cautious sentiment across both retail and institutional participants. The broader market environment — characterized by tightening liquidity, macro uncertainty, and subdued risk appetite — has further complicated Ethereum’s recovery path, leaving the asset locked in a fragile consolidation phase. From a moving-average perspective, ETH is trading below the 50-week and 100-week averages, both of which are beginning to slope downward. This alignment generally signals weakening intermediate-term momentum. The 200-week average remains below price but is approaching as potential structural support, making this zone particularly relevant for longer-term positioning.Related Reading
Volume dynamics suggest increased activity during recent selloffs, indicating distribution rather than passive consolidation. However, there are early signs of stabilization as volatility compresses, often a precursor to either continuation or a relief rebound.
If Ethereum fails to reclaim the $2,000–$2,200 region convincingly, downside probes toward the long-term average remain plausible. Conversely, sustained acceptance above that level would be required to rebuild bullish momentum and restore confidence among sidelined capital.
Featured image from ChatGPT, chart from TradingView.com
About Author
