Ethereum has seen a wild week, dropping from $4,200 to $3,500 in just a few days. It’s one of those moments where the chart looks heavy, but if you know how liquidity works, you might see what’s really happening beneath the surface. 

Right below the current price, there’s a cluster of liquidity, basically, stop-losses and pending buy orders that the market often likes to grab before reversing.

Once that liquidity gets taken, ETH could see a clean short-term bounce, maybe even revisiting the $4,000 zone, where the last buyside liquidity sits.

In simple terms, buyside liquidity is where traders have pending sell orders or stops above recent highs, creating another potential magnet for price once momentum flips.

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I’ve seen this type of move play out countless times: the market takes liquidity from one side, breathes, and then goes after the next pool. But still, nothing is guaranteed. The price can act unpredictably, and every scenario remains just that — a possibility, not a promise.

For now, all eyes on that lower liquidity sweep. ETH might just be preparing its next leg up.