Ethereum (ETH) is trading in a precarious position following a sharp weekend sell-off, with traders closely monitoring key liquidity levels around $1,929 support and $2,107 resistance. The cryptocurrency is currently near $1,977 after a high-volume breakdown below the crucial weekly support zone of $2,300–$2,360.
The market structure is defined by a weekend range with a low near $1,929 and a high close to $2,107, formed under thinner liquidity conditions. Analysts note that weak lows like $1,929 often attract stop orders, and a temporary sweep below this level could clear those stops and potentially set the stage for a recovery attempt back toward the $2,107 resistance. Trader Lennaert Snyder highlighted this plan, stating, "My trading plan for this week is that we test higher prices, but for quality longs I'd like to see liquidity pools getting mitigated first."
The sell-off was exacerbated by a massive unwind in derivatives markets. Ethereum's aggregate open interest collapsed by nearly 50%, falling from approximately $23 billion to $11.3 billion. This indicates a wave of aggressive long liquidations and a derivatives-driven flush of leverage. While such a reset can sometimes signal a local bottom, it underscores a significant shift in market momentum.
On-chain metrics further support a cautious outlook. Active addresses on the Ethereum network have declined since a peak in early February, dropping toward the 520,000 range, suggesting reduced speculative participation. Furthermore, after months of steady outflows indicating accumulation, exchange reserves have begun to tick higher, potentially signaling increased sell-side liquidity is becoming available.
Technically, ETH has confirmed a lower-high structure on the weekly chart. With the breakdown below $2,360, the immediate support zones to watch are $1,820–$1,850, followed by a major macro level at $1,530. The weekly RSI is in the low-30s, approaching oversold territory, but without a confirmed bullish divergence. Analysts suggest the bearish narrative will only weaken if ETH can reclaim the $2,150–$2,200 resistance zone, open interest stabilizes, and exchange reserves resume their downtrend. Until then, the focus remains on whether price will hold above or sweep the $1,929 low.
