Ethereum Price Holds $2,680 After Liquidation Sweep—Can the Bulls Prevent a Drop to $2,373?

The Ethereum (ETH) market has recently stabilized around the $2,680 mark following a substantial sell-off that resulted in significant long liquidations across various derivatives platforms. While a short-term rebound is evident, the market is experiencing elevated volatility, with bearish sentiments prevailing in the near term. Currently, ETH is hovering near a critical support range, making the upcoming monthly close vital to determine if this area can serve as a foundation for a rebound or signal a deeper corrective trend.

Analyzing the daily charts, it is evident that Ethereum is transitioning from a robust uptrend witnessed in 2025 into a phase characterized by correction and consolidation. After hitting a peak of approximately $4,800, ETH has consistently recorded lower highs and lower lows, indicating a weakening of bullish vigor. The price is now probing a crucial horizontal demand zone around $2,700–$2,750, an area that previously functioned as a major accumulation point. The convergence of this level with observable trendline and volume behavior makes the current market structure pivotal in determining ETH’s short-term trajectory.

The chart indicates a breakdown from a previously rising trendline, which suggests a loss of short-term bullish momentum. Currently, ETH is positioned just above a significant support band around $2,740, with the next main downside target set at approximately $2,370. The On-Balance Volume (OBV) continues to trend downward, indicating a decrease in buying pressure and signaling a potential phase of distribution rather than accumulation. The recurring rejections near the $3,200–$3,400 zone highlight strong overhead resistance. Thus, failure to reclaim the earlier trendline could increase the likelihood of additional downward movement.

In summary, Ethereum stands at a critical crossroads. The interplay of horizontal support, previous consolidations, and declining OBV points to a cautious approach in the short term. A decisive daily close below the $2,700 threshold would affirm a bearish continuation, while a strong bounce accompanied by increased volume could ignite recovery prospects. Until ETH reclaims the $3,000–$3,100 area, any rallies may encounter selling pressure, with the broader market bias leaning towards neutral to bearish.

As we approach month-end, ETH is expected to fluctuate between the $2,600 and $2,900 range, leaning bearish if support falters. A breakdown to $2,370 could impede trades in February, favoring a more defensive strategy. Conversely, if the price can hold at $2,700, it may pave the way for a stabilization phase and selective dip-buying interest in February.