Ethereum Shows First Signs of Recovery as Market Selling Pressure Fades

Ethereum is finally showing its first meaningful sign of stabilization after several weeks of intense selling, offering traders a potential shift in momentum. The key development is the formation of a clear higher low on the daily chart—an important structural signal that bearish pressure may be easing. Unlike Bitcoin, which recently dipped to fresh lows, ETH managed to hold above its previous bottom, reinforcing the idea that sell-side exhaustion is beginning to take place.

This higher low sits just above the familiar $2,900–$3,000 range, an area that has historically acted as a strong demand zone. Earlier in the year, this level attracted consistent buying interest whenever Ethereum entered oversold conditions, and the market appears to be reacting similarly now. The Relative Strength Index supports this view; after plunging deep into oversold territory during the recent downturn, the RSI has started to recover. When this type of reset aligns with a higher low, it usually suggests that market makers are shifting from chasing price downward to slowly accumulating again.

Volume trends further strengthen the case for stabilization. The latest daily candles show noticeably lower trading volume, a typical characteristic of a market exiting panic mode. While the breakdown from $3,500 triggered aggressive liquidations, the recent slowdown in volume hints that the worst of the forced-selling phase may be over. Instead of accelerating downward, ETH is now drifting toward consolidation—a phase where reversals quietly begin to take shape.

The next critical test lies with Ethereum’s 50-day and 100-day moving averages. These levels currently sit above the price and will likely act as resistance during any early rebound. A decisive move above the $3,300–$3,400 zone would confirm that the higher low marks a genuine trend pivot rather than temporary noise. Should this breakout occur, a midterm climb toward $3,700 or even $4,000 becomes increasingly plausible.

Overall, Ethereum’s recent price action suggests that the bearish momentum gripping the market is finally weakening, giving traders a reason to watch closely for a potential trend reversal.