After a steep selloff, Ethereum’s price dropped to the $2400 range after the 200-week average was reached and the key trend channel for the long term. Now ETH is in a trading range with high activity, and the next move will determine the direction of the cryptocurrency’s short-term price.
Ethereum pulls back towards long-term trendline as volume profile marks key trading zone
Ethereum’s pullback was extended on the daily charts, with the price trading at $2,535 following a red sharp candle which showed an approximately 6% drop in the Bitstamp Feed. Chart still shows the movement as a pullback from August 2025’s peak at $5,000. Some analysts call this the latest high of the cycle.
TradingView (Leo Lanza) Ethereum/U.S. dollar 1D chart. TradingView (Leo Lanza)
Leo Lanza, a crypto analyst, argued the price declines since $5,000 can be categorized as an upward trend if they are accompanied by a high low. In his chart, Ethereum has now approached a long-term trend channel rising that begins around March 2020. The channel only has two significant touch points, which means it needs to be confirmed before it can be considered a boundary.
Volume profiles on the right-hand side of the graph show where the trading is concentrated. Lanza said low-volume nodes are zones that price rejects rapidly because historically fewer transactions occurred. He referred to high-volume nodes as areas of acceptance, where heavy activity could slow down prices and cause consolidation.
According to the view currently available, Ethereum is located inside of a node with high volumes. This suggests that the market may have traded in this area heavily and treat it more as a zone for decision making than an air pocket. When the price moves into the low-volume area marked, it can be faster to move in any direction because of reduced liquidity and decreased trading interest. The chart indicates a testing of support and structure. Confirmation will depend on the behavior of Ethereum around the long-term trendline and high volume band.
Ethereum Falls to 200-Week Average As Traders Wait for Bull Reaction
Ethereum dropped sharply following the last weekly candle that showed a dramatic drop in the chart. This move pushed ETH to its 200-week moving average. It is a level which has been closely watched and often serves as a trend indicator during long-term pullbacks.
Weekly chart of Ethereum/U.S. Dollar TradingView (StockTrader Max).
StockTrader Max, a market commentator, said that this was the area where the bulls would “have to appear,” and argued that if the chart bounced off the 200 WMA it could quickly look better. He believes that the 200 WMA is often defended by long-term buyers when the market tests this level after prolonged declines.
Chart also shows Ethereum falling under shorter-term trend measures as the selloff continues. The 200-week line is closer to the current price than the 50-week moving average, creating a zone of high pressure where the momentum could either stabilise or continue lower.
The move will be interpreted as a test of support rather than a break in the trend if Ethereum maintains the 200-week average, and then reclaims the nearby levels. If the price does not bounce back and continues to close below the long-term average, then the chart will indicate that the sellers are still in control of the market. Previous support would also have weakened.
