In this Ethereum daily chart, the price structure shows that after a strong correction, the market is approaching a major demand zone highlighted by the large blue box in the $2,450–$2,650 range. This zone has acted as a powerful support in the past and has triggered multiple strong bullish reversals. In the recent move, after several weeks of consolidation inside the upper supply box (the green zone around $3,450–$3,700), the price failed to break above it and started a steady decline. The formation of lower highs and lower lows confirms the continued strength of sellers during this phase.
However, the scenario illustrated on the chart suggests that the price is likely to show an initial reaction and short-term fluctuation upon reaching the blue support zone. Then, after forming a new low and creating a reversal structure (CHoCH or BOS), there is a potential for a bullish wave toward the $3,700 supply region. This scenario becomes more valid if the price shows clear signs of liquidity absorption and structural change within this zone. If this reversal takes shape, a medium-term upward move can be expected, marking the return of buyer strength in the market.
Overall, the market is currently in a corrective phase, and entering long positions at the current levels carries high risk. However, the blue zone represents a key demand area that could become the starting point for a new bullish wave. Traders should wait for a clear reaction and confirmation of reversal in this zone before entering any long positions with confidence.
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