Ethereum price has fallen to a critical technical threshold. According to CoinGecko data, ETH lost 4.97% in value in the last 24 hours, falling to $ 1,825.08. The weekly decrease was recorded as 11.71%. In the same period, transaction volume reached 23.6 billion dollars.
The $1,825 level stands out for short-term direction
The focus in the market is on whether the price can hold on to the current support zone. Ali Charts, known for its technical analysis, evaluated the $ 1,825 level as an important threshold for Ethereum. According to the analyst, ETH has retreated to the lower band of the price channel and this area may determine the direction of the next big move.
In Ali Charts’ scenario, if $ 1,825 is maintained, a reaction rise may be seen first towards $ 2,070 and then towards $ 2,360. On the other hand, a close below this level raises the risk of a new retreat towards $1,500.
Ali Charts stated that the Ethereum price reached the target of $ 1,825, this level formed a critical bottom at the bottom of the channel, and the reaction of the buyers could determine the next main move.
The tension in the market in the short term stems from these two possibilities. The price is on the edge of the possibility of both an upward reaction and a downward breakout. For this reason, the $1,825 region is considered important for traders not only in terms of support level but also in terms of direction determination.
Support zone, short positions and funding rates are closely monitored
Cryptic Trades stated that the technical outlook in the wider time frame attracted attention. According to the analyst, Ethereum has directly touched the higher timeframe support range, which coincides with the bottom formation in February. Therefore, it is stated that the next few days may be decisive.
The analyst thinks that the most likely scenario in the near term is a horizontal trend within this range. The reason for this is the increasing short positions and funding rates that have turned significantly negative in recent days.
Mini dictionary: Funding rate refers to the periodic payment applied to maintain the balance between long and short positions in the futures markets. A short squeeze is a situation where the upward movement accelerates as the price rises and those with short positions are forced to close their transactions.
Cryptic Trades noted that, historically, such conditions can set the stage for sharp reversals and rallies where short positions are quickly liquidated. However, the analyst emphasized that such a squeeze alone would not be sufficient and that a definitive conclusion should not be drawn without a clearer sign of structural strength.
Cryptic Trades noted that Ethereum has fallen into the high time frame support area, short position accumulation and negative funding rates may support the reaction movement, but for this to happen, a strengthening in the market structure must be seen first.
The $2,020 level is watched as the main resistance
Another threshold highlighted by the analyst was the 0.618 Fibonacci level at $2,020. It is considered that the risk of continuing the horizontal trend or continuing the downward trend remains high before this zone is overcome and regained as support.
Despite this, the opinion that the risk-return balance has become more attractive at current levels was also expressed. It was stated that since Ethereum was traded in a wide support zone where bottom formations were previously seen, the possibilities gradually started to turn in favor of buyers. Still, the analyst noted that he did not increase his spot position until there was clear confirmation that the bulls had regained control.
