Ethereum is sitting in a tricky spot right now. A rejection from a key supply zone has put ETH back on the bearish radar, and multiple technical setups are pointing in the same direction: down.
The Ethereum price recently ran into resistance around $2,078, a level tied to a daily fair value gap that has been on traders’ watchlists for weeks. That rejection, combined with a structural pattern known as SMT divergence, has several analysts calling for further downside.
Bears Hold the Structure
According to CryptoPatel on X, the setup on the 4-hour chart is showing a clear bearish continuation signal. He noted a rejection from the 1D FVG at $2,078 with SMT divergence forming at the highs, pointing to weakness and a likely move toward sell-side liquidity below current price.
“ETH is reacting from HTF orderflow (1D FVG) with SMT divergence at highs, signaling weakness and potential downside continuation.”
CryptoPatel outlined price targets at $1,980, then $1,800, and $1,500 as the deeper draw. Invalidation sits at a 4-hour close above $2,204. Lower highs are forming on the chart, and a liquidity sweep has already taken place, setting the context for a potential reversal.
That bearish read is not isolated. TedPillows, also posting on X, said the short-term downside liquidity has been largely absorbed at current levels. But the picture beyond that is still weighted to the downside.
What Comes Next for ETH
“Short-term downside liquidity has been mostly taken out. There are decent liquidity clusters around the $2,100 level, which could be next. After that, Ethereum will continue its downtrend.”
That view from TedPillows points to $2,100 as a potential short-term draw before ETH resumes its broader downtrend. The cluster there could pull price up briefly before sellers step back in.
Both reads suggest Ethereum is not done with its correction. The $1,980 zone is the first real test. A failure to hold there opens the door to $1,800, a level that carries heavier historical significance and one where longer-term buyers may start to show up.
The $1,500 target is the more aggressive projection. Still, it fits within the broader structure CryptoPatel laid out, where the draw on liquidity below the current range remains intact as long as ETH stays under $2,204 on the 4-hour close.
Invalidation Level in Focus
Price action around $2,078 to $2,100 will be the key range to watch in the coming sessions. A sustained move above $2,204 would change the setup entirely, flipping the bearish read and potentially setting up a push toward higher supply zones.
Until that happens, the path of least resistance appears to be lower. Sell-side liquidity below $2,000 remains the primary target, with the $1,800 level acting as a major draw further down.
