Ethereum News Today: Ethereum's $2,700 Test: Can Buyers Spark a Comeback?

Ethereum (ETH-USD) is navigating a critical juncture as on-chain metrics and technical indicators suggest the asset could form a price bottom below $2,000. The cryptocurrency has been trading within a key demand zone between $2,700 and $2,850, a region that historically acted as a catalyst for rebounds, including the July breakout. However, sustained bearish momentum has pushed ETH below both the 100-day and 200-day moving averages, with sellers maintaining control as lower highs and lower lows define the daily chart. A clean breakdown below $2,700 could expose the $2,450–$2,550 range, where long-term buyers previously intervened, but any recovery would require a retest of $3,000 and a close above the 100-day MA to signal a shift in momentum.

Macro headwinds have exacerbated the downturn, with Ethereum slipping nearly 6.5% this week amid broader crypto market recalibration. Over $650 million in liquidations, including $130 million in ETH long positions, have occurred in the past 72 hours, reflecting a structural tightening in liquidity driven by rising U.S. Treasury yields and cautious institutional rotation toward safer assets. The 10-year Treasury yield remains near 4.08%, dampening demand for crypto as a risk hedge, while Bitcoin (BTC-USD) has also dipped to $58,400. Ethereum's underperformance has been amplified by cooling optimism around U.S. spot ETH ETF approvals and a $3.4 billion decline in total crypto market capitalization since mid-September.

On-chain data reveals a volatile equilibrium forming near current levels. A two-week liquidation heatmap highlights dense clusters between $3,100 and $3,600, indicating heavy short positioning and forced exits during the recent drop. Meanwhile, liquidity voids above $3,200 align with major daily fair value gaps, historically acting as gravitational pull points during corrections. Analysts suggest that a temporary capitulation into the $2,700 demand zone could precede a rebound, as exhausted sellers are flushed out.

Short-term traders are closely monitoring the $3,000–$3,150 range, with a decisive break below $3,000 exposing Ethereum to $2,870, aligned with the 200-day exponential moving average. Conversely, a recovery above $3,150 could push prices toward $3,300, a level that has repeatedly rejected buyers in the past two weeks. Derivatives data shows increased open interest in short exposure, signaling expectations of volatility around these thresholds.

Despite the near-term turbulence, Ethereum's fundamentals remain resilient. Daily on-chain transactions hover near 1.05 million, and gas fees have risen slightly to $4.80 due to renewed NFT and DeFi activity. Institutional staking services like Coinbase Custody and Bitwise report steady inflows, while Lido's staked ETH surpassed 8.95 million. The Dencun upgrade, expected in early 2026, is positioned to enhance scalability via EIP-4844, potentially boosting adoption in DeFi and enterprise applications.

Ethereum's path forward hinges on macro stability and a successful rebalancing of leverage. Funding rates have normalized, and exchange outflows suggest accumulation by wallets rather than panic selling. While risks persist-including a potential ETF inflow slowdown or dollar strength-analysts argue that Ethereum's long-term fundamentals remain intact. A stabilization in macro conditions could set the stage for a rebound, with the $3,000–$3,100 range viewed as a strategic accumulation zonehttps://cryptopotato.com/ethereum-eth-recovery-key-liquidity-zone-now-in-focus/.