Ethereum’s sharp decline from the recent rally is presently approaching several key support levels. Its current price trades around $2835, down 5.16%, and shows a weakening momentum on the price chart as it approaches a historic level of support that was experienced during prior cycles. Traders are paying close attention to this level because it led to a significant reversal from 2021 to 2025. Currently, the market is re-testing this significant price level.
Ethereum has been formed within the structure of price action between $1090 and $4900, representing price action from early 2021 until to late 2025. The upper end of the created structure is formed around the $4500 to $4900 range, where significant rallies have been cut off since 2021 and again in 2024, and more recently during 2022, when Ethereum entered the created zone before making a reversing move back down within this same portion of the structure.
The immediate support level below the current price is located around the $2400 price point. This price level had previously been tested as support a number of times during both mid-2023 and again in 2024 as the upward arrow signals interest in returning to the $2400 price point.
The second level of support is currently located at approximately $1480. The $1480 price point had originally been a level of resistance in 2022, and after being tested as resistance, the Ethereum price successfully experienced a significant rebound in 2023 and successfully broke above this level. The arrow for this second line of support also marks a level of increased activity as traders continue to re-accumulate the Ethereum price at or near the $1480 price point.
Lastly, the lowest major level of support for Ethereum is around $1090. This was the previous capitulation low for the Ethereum price in February 2022, and following this price point, Ethereum began the long and steady process of recovering its losses through late 2022 and into early 2023.
Ethereum now faces short-term resistance near $2,960, and the market reacts each time price approaches it. If Ethereum fails to break $2,960, it may pull back again. Initial support appears near $2,820, followed by the first major support at $2,800.
A drop under $2,800 could push Ethereum toward $2,740, and further losses could reach the $2,720 region. The next supports sit at $2,650 and $2,620, creating a cluster of levels that traders monitor.
Technical indicators show selling pressure. The MACD gains momentum in the bearish zone on the hourly chart. The hourly RSI moves below the 50 zone and signals fading strength. The major support level sits at $2,800, and the major resistance stands near $2,940.
Exchange data from Crypto Rover and Coinglass shows a significant decline in Ethereum balances from December to mid-November. In early December, balances sat near 16.5 million ETH while price traded above $4,500. The balance then trended downward, and by mid-January, it moved toward 14.5 million ETH.
A short recovery appeared in March, followed by a sharp drop again in April. Another brief spike occurred later, but the trend shifted downward through the summer. Between July and mid-August, Ethereum surged toward $4,900, yet balances remained stable. After September, balances fell sharply, dropping below 13 million ETH and reaching levels near 12.5 million ETH.
The chart includes a red arrow that signals this steep decline from early September to early November. This trend raises a pivotal question: Will shrinking exchange balances influence Ethereum’s ability to hold major support zones?
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Ethereum moves toward critical support levels as its price weakens and exchange balances fall sharply across major platforms. The chart signals tightening conditions, and technical indicators show growing pressure near short-term zones. Traders may monitor these levels closely to assess whether ETH can stabilize or extend its decline.