Ethereum (ETH) has faced a sharp decline in recent days, dropping 14% over the past week. Despite this decline, analysts suggest that the recent weakness is not a sign of weakness and could lead to the next big rally. The asset is trading at around $3,390 at press time after rising 2% in the past 24 hours.
Some technical analysts continue to point to long-term chart structure and liquidation setups that support the possibility of a bullish continuation.
Pattern suggests breakdown may precede breakout
Trader Kumamushi shared a multi-cycle view of Ethereum price movement on the 3-day chart. This setup indicates that ETH has entered a strong uptrend following a previous breakdown from support levels. These breakdowns were followed by sideways ranges that later led to major breakouts.
In the latest move, ETH appears to be repeating this structure. Suggesting that the recent price drop could be the starting point for the next uptrend, Kumamushi said:
$ETH/3 days
A breakdown is essential for a large-scale surge 🔥 #Ethereum pic.twitter.com/jMexdye4bg— Trader Tardigrade (@TATrader_Alan) November 6, 2025
Based on this pattern, ETH may be building foundations before a continuation.
Maintain a long-term structure
Bach, another market analyst, noted that the long-term bullish pennant formation is still intact on the weekly chart. Ethereum recently reclaimed the $3,000 breakout level, which coincides with the 0.382 Fibonacci retracement of the previous cycle. This area is monitored as support.
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Future price targets based on Fibonacci predictions include $7,700, $15,500, and $30,500, with a possible macro top between 2025 and 2026. Mr. BACH commented:Emotions towards cryptocurrencies have been completely washed away and people are in extreme fear” refers to current market conditions that have historically occurred near the bottom.
Short-term levels and leverage signals
Analyst Lennart Snyder pointed out that ETH needs to sustain the $3,300 level to sustain further lows. He added that it was important to get the $3,530 back.
“If we lose $3,300 with conviction, we'll probably be shorting the continuation to a new low,” he said.
Liquidation data shows that short positions have built up between $3,500 and $3,800. If prices rise, forced liquidations can cause prices to rise quickly. “The biggest pain is equivalent to $ETH” CryptoGoos noted this risk for short traders.
Despite the recent recovery, ETH has struggled to regain the $3,600 to $3,700 zone. Analyst Ted said the pullback was mainly caused by closed short positions.
“Until Ethereum regains the $3,600-$3,700 zone with strong inflows, the chances of that happening will decrease further,” he noted.
as crypto potato According to the report, Binance's taker-buy ratio is still below 1.0, indicating stronger selling pressure than buying volume. This is consistent with the broader view that selling is increasing even as buyers remain cautiously on the lookout for a reversal.
