Ethereum News Today: ETH's $2,700 Defense: Can Buyers Avert $2,500 Capitulation?

Ethereum (ETH) faces a critical juncture as bearish momentum intensifies, with the cryptocurrency testing key support levels that could determine its near-term trajectory. The asset has been oscillating within a descending channel, with analysts and on-chain data highlighting both potential catalysts for a rebound and structural challenges that may prolong the downtrend.

Technical indicators suggest Ethereum is at a pivotal decision point. The $2,700–$2,850 range-a former accumulation zone ahead of the July rally-has emerged as a critical support area according to analysis. A breakdown below this level could expose the $2,450–$2,550 zone, where long-term buyers previously intervened (source). Conversely, a sustained recovery would require ETH to reclaim $3,000 and close above the 100-day moving average to signal a shift in momentum according to analysis. The $3,170 resistance level, however, remains a persistent ceiling, with historical attempts to breach it failing due to heavy supply clusters and selling pressure from long-term holders as reported.

On-chain data underscores the fragility of any potential reversal. Long-term holders have been net sellers, offloading over 58,352 ETH (worth ~$175 million) in a single day as of November 19 according to reports. A cost-basis heatmap reveals a dense supply block between $3,150 and $3,170, which has rejected multiple upward attempts as data shows. Meanwhile, retail traders are offloading positions, while whales with large ETH holdings are accumulating, signaling a potential redistribution phase according to analysis. Forced liquidations have also declined, reducing immediate selling pressure but increasing the risk of a short squeeze if buyers defend the $2,800 area as noted.

Market sentiment remains bearish, exacerbated by macroeconomic uncertainty. The release of Federal Reserve minutes in late November triggered a sharp sell-off, pushing ETH to a seven-month low near $2,870 according to analysis. Analysts note this level aligns with historical support clusters and the midpoint between Ethereum's 2021 peak and 2022 bottom as data indicates. While some argue the move reflects normal crypto volatility, others caution that liquidity resets-where trading activity compresses before a breakout-often precede multi-week bottoming periods according to analysis.

The path forward hinges on whether buyers can defend the $2,700–$2,850 zone. A successful hold could target the $3,050–$3,150 imbalance region, but without a decisive break above the descending trendline from $4,200, any rebound is likely to remain corrective according to analysis. Conversely, a capitulation into the $2,450–$2,550 area could clear exhausted sellers, historically paving the way for recovery phases as observed.