ETH is hitting the same liquidity reset zone that marked its last major bottoms, just as price slips under $3,000. Now traders are watching whether a single line near $3,200 decides if this is a real floor or just another trap. ETH Liquidity Reset Signals Possible Bottoming Phase Ethereum’s liquidity index is collapsing toward its deepest reset zone, and past cycles show this level has often aligned with market bottoms. The latest chart from Swissblock, shared by analyst Rand, places ETH in the same liquidity pocket that marked earlier correction lows in 2024 and mid-2025. ETH Liquidity Reset Indicator. Source: Swissblock The index tracks how much liquidity supports Ethereum’s broader market structure. Each time the blue line dropped to zero in previous cycles, ETH entered a prolonged bottoming period marked on the chart with red shading. Those stretches followed sharp drawdowns but eventually led to rebounds once liquidity rebuilt. This reset appears similar. Liquidity has fallen quickly while the price line in grey trends toward the lower right, mirroring the setup from the April and October zones. Those earlier resets produced multi-week stabilization before momentum returned. The pattern also shows a sequence: liquidity peaks, resets, bottoming, and recovery. ETH is now entering that reset portion again. The current drop coincides with a broad contraction in market depth across major exchanges. As liquidity thins, downside moves accelerate. Yet the chart shows these collapses have historically exhausted selling pressure, allowing the market to form a base. Rand noted that resets “previously signalled the bottom,” and the chart aligns with that claim. The timing clusters around major liquidity washouts where flows reversed after hitting structural extremes. Although the indicator does not forecast duration, its cyclical nature offers a consistent signal. Once liquidity rebuilds from zero, price tends to follow. ETH now sits in that same zone, suggesting the market is entering a transition that previously marked early stages of recovery. ETH Must Reclaim $3,200 to Restore Bullish Structure Meanwhile, Ethereum is sliding below the $3,000 mark again, keeping the chart tilted toward downside risk. The daily setup from trader TedPillows shows price trading under a former support band that ran around $3,200, turning that zone into the first major barrier for any recovery attempt. Ethereum Key Levels Outlook. Source: TedPillows The chart highlights a narrow support shelf just above $2,950, marked in green, where bulls last slowed the decline. If ETH holds this band, the path sketched on the chart suggests a rebound into the $3,200 area. Only a clean reclaim of that level would reset short-term momentum and open room toward the $3,400–$3,600 supply zone, where a thick red block marks heavy past selling. However, failure to defend the current support would keep pressure on the downside structure. The map then shifts toward lower green demand zones between roughly $2,850 and $2,700, reflecting the next areas where buyers previously stepped in. Each white arrow on the chart tracks that fork: either a reclaim of $3,200 that tests higher resistance, or a breakdown that drags ETH into deeper support.
