• Ethereum nears critical support below $1,900, with 3.56 million ETH bought at this level.
• $30.21 million in Ethereum futures liquidations reflect market uncertainty and volatility.
• ETH remains in consolidation; a breakout above $2,200 is needed to reverse the bearish trend.

Ethereum (ETH) is nearing a critical support area slightly below $1,900 and has made this extent a significant level for the token. In a post shared by an analytical platform, IntoTheBlock, the funds of 3.56 million ETH were bought at a price of between $1,843 and $1,900. This bullish accumulation gives a lot of support at this range. However, if the price dynamics of Ethereum fall below this level, the probability of a new breakdown rises, as the demand looks significantly weaker above it.

According to Coinglass data, Ethereum has been through significant movements in the last 24 hours that led to $25.61 million worth of futures being liquidated. It also comprises $15.55 million in long positions and $9.06 million in short positions. These large liquidations represent constant fights in the market; whether longs and bears, bulls are being driven from the market.

Source: CoinGlass

Ethereum is also in a consolidation phase of a technical configuration that stretched into the second week. ETH has continued to fluctuate downwards and has not been able to rise above the $2,000 mark and also cannot push past a descending line. This has led to the formation of a sideways consolidation pattern, which the market may extend even lower.

If the price of ETH stays on the consolidation channel, a breakdown below the $1,750 level is possible. A decrease further below this level may once again bring focus on more important support at $1,500. To avoid such a situation, ETH has to rise above the descending trendline and use it to give support. If there is no such breakout, the bearish trend is likely to continue as depicted in the figure above.

Source: TradingView

Fundamentally, technical aspects also anticipate bearish chores as highlighted on the chart. RSI is below 50 points and Stoch is below 50; also, they are both indications of bearish pressure dominating the market. This indicates that Ethereum, at least in the short term, is most likely to extend this pressure and not reverse it.

When it comes to any change in the bullish direction, ETH will need to consolidate the daily candle above $2,200. Such action would devalue the bearish prospects and create the right conditions for an upward movement to $2,800 might be ready. Until these levels are reached, ETH is still vulnerable to further downward movements as the market awaits some base signs.