Ethereum Supply and Demand Zones: Where the Next Move Unfolds

Current Price Reality: ETH Trading at $2.94K with -2.39% Daily Shift

Ethereum is presenting a textbook study in market structure. The recent pullback from the supply zone around 3,390 – 3,420 wasn’t capitulation—it was institutional repositioning. Smart money validated the resistance level and efficiently tested buyer conviction below. Now ETH drifts into the critical demand block where the real battle lines form.

The Supply Zone Rejection: What It Tells Us

When price touched 3,390 – 3,420, the immediate reaction revealed everything. Rather than weakness, this showed large holders distributing while gauging support strength. The swift reversal signals that buyers remain engaged, but smart entries matter more than rushed positions.

Two Demand Zones Define the Battlefield

Zone One: 3,320 – 3,345 This level just demonstrated its relevance. Watch for the character of price action here. If buyers step in with volume conviction and clean candle closes, a short-term reversal setup materializes. This is where patient traders distinguish themselves from emotional ones.

Zone Two: 3,245 – 3,285 The deeper demand engine sits here. This represents the main re-accumulation zone where strong hands traditionally accumulate. If momentum gradually deteriorates as price approaches this level, expect institutional buying to provide foundation support.

Upside Targets When Demand Holds

• First Reclaim: 3,380 marks immediate resistance confirmation
• Breakout Level: 3,450 represents structural confirmation for momentum
• Extension Target: 3,520+ opens as viable if volume alignment occurs

Risk Scenario: The Reset Alternative

If ETH decisively breaks below 3,320 with accelerating sell pressure, don’t interpret this as bearish news. Instead, recognize it as a market reset—price moves deeper into demand where larger accumulation eventually forms. This distinction between panic and structure separates successful traders from reactive ones.

The Entry Discipline That Works

Timing beats urgency. Watch for three key signals before committing capital: slowing candle formation, deep wicks showing rejection of lower prices, and volume pattern shifts. These technical shifts confirm institutional positioning, not retail panic.

Ethereum’s next directional move arrives with purpose and force. The question isn’t whether ETH moves—it’s whether you’ll be positioned correctly when it does.