Ethereum has slid about 42% from its all-time high and market signals point to a defined zone where buyers are most likely to step in. The debate centers on whether current selling exhaustion will hold and trigger a recovery or allow a deeper capitulation.
Price action has concentrated at a critical support band around $2.800–$2.900, an area that has repeatedly attracted buying interest and functioned as a short-term battleground. Momentum indicators are markedly oversold: the Relative Strength Index (RSI) has frequently fallen below the 30 threshold and in some snapshots approached the mid-teens, while the Stochastic Oscillator also sits in deeply oversold territory; the RSI is a momentum metric that measures recent gains versus losses on a 0–100 scale.
Although the MACD still registers bearish momentum, the divergence between ethereum price and these oversold oscillators suggests selling may be near exhaustion, a dynamic that historically precedes technical bounces.
Demand zones, expert calls and whale accumulation
Beyond the immediate band, analysts note a secondary demand floor between $2.700 and $2.780 where sizeable bids are expected to absorb selling pressure. Prominent market voices have highlighted a lower, psychologically important anchor: Tom Lee has specifically identified $2.500 as a potential cycle floor. Large-holder activity reportedly shows accumulation into these lower levels, with so-called whales increasing positions, an on-chain behavior that can precede broader market stabilization when concentrated capital re-enters the market.
If support into the current demand structure holds, technical projections point to a near-term rebound toward roughly $3.150–$3.200 within the next fortnight, a move driven primarily by mean reversion from oversold conditions. Conversely, a failure of the layered supports would keep the theoretical risk of a deeper sell-off alive, with a lower downside scenario in the region of $2.000–$2.100; that outcome is presented as possible but less supported by the prevailing technical and accumulation signals. Traders should note that leverage amplifies both outcomes and can turn technical support tests into rapid liquidations.
Market signals—oversold momentum, layered demand zones and reported whale accumulation—converge to suggest the current correction may be forming a bottom, with near-term recovery contingent on holding the identified support structure.
