Ethereum Shows Signs of Stabilization as Selling Pressure Fades

Ethereum’s recent market behavior is signaling that its sharp downturn may be approaching an end, with several indicators pointing toward fading bearish momentum. After plunging from the $4,600 range to below $3,000, ETH has finally begun to stabilize, carving out what appears to be a local bottom. This shift is significant because, for the first time in months, the chart is showing a clear higher low near the $2,800 area—suggesting sellers are losing control and downside exhaustion is setting in.

The price has since climbed back toward the 20-day moving average and is consolidating just under $3,100. This zone is becoming an important test for Ethereum, as reclaiming it could confirm the early stages of a trend reversal. The slowdown in bearish continuation over recent sessions further supports the idea that selling pressure has peaked, with the market transitioning away from the aggressive declines seen earlier.

Market participation is also normalizing. Trading volume has returned to typical levels after October’s intense cascade, replacing panic-driven activity with more stable engagement. This shift often marks the point at which weak-handed sellers have mostly exited, allowing stronger buyers to gradually regain influence. Technical indicators echo this stabilization, with the Relative Strength Index holding in the mid-40s—neither oversold nor overheated—indicating balance rather than capitulation.

While a rapid breakout is unlikely, Ethereum appears to be entering a measured recovery phase. Momentum is slowly tilting back toward buyers, suggesting that the worst of the downturn may be behind the market. Instead of anticipating another steep decline, investors should expect a period of cautious rebuilding as ETH attempts to reestablish bullish footing and potentially set the stage for a more sustainable upward move.