Ethereum drops near $2,042 as bearish structure holds, with traders watching key liquidity levels and a $2,345 reclaim for trend reversal. Ethereum has continuedEthereum drops near $2,042 as bearish structure holds, with traders watching key liquidity levels and a $2,345 reclaim for trend reversal. Ethereum has continued

ETH Breakdown Continues: Key Levels That Decide the Next Major Move

2026/02/06 14:30
3 min read

Ethereum drops near $2,042 as bearish structure holds, with traders watching key liquidity levels and a $2,345 reclaim for trend reversal.

Ethereum has continued to trend lower and recently traded near $2,042. Market participants are closely watching price structure as downside pressure remains active.

Analysts say the current move reflects a broader bearish trend rather than a sudden selloff.

Ethereum Price Maintains Bearish Market Structure

Ethereum’s price action continues to show a clear bearish structure on higher time frames.

Analysts tracking market structure note that no bullish shift has formed on the four-hour chart.

As long as this condition remains, downside bias is expected to stay in place. Price movement has shown a steady grind lower rather than sharp drops.

This behavior often signals ongoing distribution and controlled selling. Traders note that such conditions can persist before any short-term bounce develops.

The current price action suggests Ethereum is searching for a temporary bottom. Relief bounces may occur, but analysts stress that structure confirmation is required.

Without this confirmation, countertrend moves remain risky.

Market participants continue to monitor higher time frame candles closely. A structural change on the H4 chart is viewed as the minimum requirement.

Until then, the prevailing trend remains intact.

Liquidity Levels Guide Short Trade Interest

Short-side interest is focused on specific liquidity zones above current price. Analysts have identified areas near $2,197 and $2,295 as notable levels.

These zones may attract price due to resting liquidity.

If price sweeps these levels, traders look for market structure breaks afterward. This approach aims to reduce risk and avoid premature entries.

The strategy relies on confirmation rather than prediction.

Analysts emphasize that timing the exact top or bottom is avoided. Instead, price behavior around these zones is closely observed.

A confirmed market structure break is required before entering short positions.

Targets for these short scenarios are set at new weekly lows. This aligns with the broader bearish trend.

Traders note that invalidation occurs only if structure shifts upward.

Conditions Required for Bullish Ethereum Setups

Long positions remain limited under current conditions. Analysts state that longs are only considered after a full H4 reclaim of the $2,345 level.

This price marks a key previous high. A reclaim would suggest buyers are regaining control.

Without it, upside moves are treated as temporary reactions. Traders avoid chasing rebounds that lack structural support.

If Ethereum prints new weekly lows, patience becomes the main approach. Analysts wait for high-probability reversals on the H4 or daily chart. These reversals must show clear confirmation.

Such confirmation may include higher highs and higher lows.

Volume behavior and candle closes are also monitored. Without these signals, long exposure remains limited.

Related Reading: Ethereum Price Warning: $1,600-$1,800 Could Be the Smart Entry Zone

Trend-Following Strategy Remains in Focus

Market analysts emphasize trend-following during periods of strong direction. Ethereum’s trend has not shown signs of invalidation.

As a result, strategies remain aligned with the prevailing move.

Bearish retests after rallies are viewed as potential opportunities. These setups depend on rejection and structure confirmation. Analysts stress discipline during volatile conditions.

Risk management continues to play a central role. Waiting for confirmation helps reduce exposure to false moves.

This approach is commonly used during extended downtrends. Ethereum traders remain focused on structure rather than prediction.

The next major move depends on how price reacts at key levels. Until structure shifts, the trend remains the primary guide.

The post ETH Breakdown Continues: Key Levels That Decide the Next Major Move appeared first on Live Bitcoin News.

Market Opportunity
Movement Logo
Movement Price(MOVE)
$0.02105
$0.02105$0.02105
-1.03%
USD
Movement (MOVE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Tags:

You May Also Like

Hauser’s Stark Warning Charts Reveal Persistent Economic Pressure

Hauser’s Stark Warning Charts Reveal Persistent Economic Pressure

The post Hauser’s Stark Warning Charts Reveal Persistent Economic Pressure appeared on BitcoinEthereumNews.com. RBA Inflation Crisis: Hauser’s Stark Warning Charts
Share
BitcoinEthereumNews2026/02/11 11:04
China’s mineral moves shake global tech and defense

China’s mineral moves shake global tech and defense

The post China’s mineral moves shake global tech and defense appeared on BitcoinEthereumNews.com. China’s overseas sales of rare-earth products hit a record in August, just days before an expected phone call between Xi Jinping and Donald Trump that could touch on the sensitive materials at the heart of high-tech manufacturing and defense. Shipments of rare-earth products, including high-performance magnets used in consumer electronics and fighter aircraft reached 7,338 tons last month, according to Bloomberg calculations based on government data. It marks the highest monthly level since early 2012 in the available records. The surge follows a steep drop earlier this year after Beijing curbed some rare-earth exports amid a growing trade dispute with the US. A pause in tensions followed. Following talks in Madrid this week, President Trump said he intends to hold a phone call with President Xi on Friday. Beijing’s rare earth rules tightened in April, cutting trade. Cryptopolitan earlier reported when China set export controls in response to higher U.S. tariffs and limits on technology transfer by Western nations. China supplies over 70% of rare earths and handles about 90% of processing. The Ministry of Commerce said the measures protect national security. New licenses slowed approvals, slashing shipments in April and May. The delays disrupted supply chains and forced auto makers outside Beijing to pause output for shortages. In July, the European Parliament urged the EU to bolster key strengths and warned China’s licensing rules seek sensitive data. Germanium demand overwhelms supply chains Pressure is also building in another corner of the strategic metals market. Chinese limits on exports of germanium, a metal vital for military thermal-imaging systems found in fighter jets and other equipment, have created a sharp supply squeeze and driven prices to their highest level in at least 14 years, traders say. Beijing announced in 2023 that it would halt exports of germanium, gallium and antimony after the…
Share
BitcoinEthereumNews2025/09/18 18:38
Low Cap Altcoins to Watch in 2025: BlockchainFX, Little Pepe, and Unstaked Could Be the Next Big Crypto Coins

Low Cap Altcoins to Watch in 2025: BlockchainFX, Little Pepe, and Unstaked Could Be the Next Big Crypto Coins

What if the Next Big Crypto Coin was already live, combining daily payouts, multi-asset trading, and the explosive upside of […] The post Low Cap Altcoins to Watch in 2025: BlockchainFX, Little Pepe, and Unstaked Could Be the Next Big Crypto Coins appeared first on Coindoo.
Share
Coindoo2025/09/18 23:26