Is Ethereum's Bull Run Over? Technical Analysis Reveals the Decision Point

The question echoing through crypto markets right now is whether Ethereum’s bull run has already peaked or if this downturn represents just another pullback in a longer uptrend. Recent price action suggests the answer lies at a critical technical level, and how ETH responds there could reshape the entire bull run narrative for the months ahead.

ETH Price Under Pressure: Current Market Snapshot

Ethereum experienced a sharp decline over the weekend, dropping approximately 5.03% in the last 24 hours to hover around $1.92K. This move wiped out recent gains and pushed ETH into a key technical zone that traders have been closely monitoring. The sell-off reflected broader weakness across digital asset markets, as fear-driven trading took hold and general risk appetite contracted sharply.

The broader market sentiment shifted dramatically, with the Fear and Greed Index reading indicating 50% bearish positioning. Such readings often coincide with capitulation events and can mark inflection points where the bull run either resumes or deteriorates further. Unlike euphoric market tops where sentiment reaches extreme greed, these panic-driven conditions have historically preceded meaningful rebounds.

Bitcoin followed a similar trajectory during the same period, suggesting that macroeconomic factors or systemic risk concerns triggered the broader selloff. The lack of significant dip-buying interest signals that recovery attempts face structural headwinds for now.

Technical Signals Clash: Short-Term Bearish vs. Long-Term Bullish Structure

Here’s where the Ethereum bull run narrative becomes interesting: the charts tell two conflicting stories depending on the timeframe you examine.

On daily and shorter timeframes, the technicals look decidedly bearish. The on-balance volume indicator has printed fresh lows, signaling ongoing distribution among holders. The Directional Movement Index confirms a strong downtrend remains in place. Meanwhile, the RSI is approaching oversold territory, reflecting selling exhaustion rather than strength. These signals collectively suggest bears retain near-term control.

However, the weekly chart presents a markedly different picture. Ethereum continues to trade within a broader bullish swing structure that formed during the explosive rally from $1,383 to nearly $4,955 in 2025. This structure remains valid as long as price doesn’t close the week below $1,383. For the Ethereum bull run to truly be invalidated from a structural perspective, such a breakdown would be required—a scenario that currently seems unlikely given accumulated support from institutional buyers.

This disconnect between timeframes is typical during market corrections within longer-term uptrends. Intraday and daily traders see profit-taking opportunities, while swing traders and institutions maintain their conviction in the longer-term thesis.

Liquidation Cascade Amplifies Ethereum’s Decline

The story of what happened to the Ethereum bull run during this weekend’s selloff cannot be told without examining derivatives data. Total liquidations reached $266.53 million, with long positions accounting for approximately $204.38 million of those forced closures. This cascade of liquidations added significant momentum to the downside move.

High leverage in the derivatives market increased fragility. As prices slipped lower, stop-loss orders triggered rapidly, which accelerated the decline and reinforced bearish momentum. This mechanical selling process, divorced from fundamental concerns, has typically been reversible once leverage resets and volatility compresses.

Until the market absorbs these liquidations and leverage levels normalize, Ethereum price action may remain choppy and prone to sudden reversals. This is an important distinction from fundamental deterioration—mechanical selling can reverse as quickly as it occurred.

Support Levels and the $2,100 Magnet

Technical analysis reveals several critical support zones that will determine whether the bull run can stabilize. From a Fibonacci retracement perspective, Ethereum has declined close to the 78.6% level, which sits near $2,147. Markets often react strongly around these deep retracement zones, and analysts expect potential liquidity sweeps through this area before any sustained recovery attempt.

More significantly, liquidity heatmaps show a dense cluster of accumulated buy and sell orders around the $2,100 level. Such zones develop when traders accumulate positions over extended periods, and they tend to function like magnets for price action. The concentration of standing orders here means price may struggle to move decisively through this band, regardless of direction.

Overhead liquidity remains relatively thin, which limits upside momentum under current conditions. Until liquidity imbalances shift, the path of least resistance could remain lower in the near term.

Institutional Conviction Amid Market Capitulation

While short-term sentiment collapsed and retail traders capitulated, institutional activity tells a different story about where the bull run might be headed. Over the past month, major holders like Bitmine added 132,813 ETH to their balance sheets. This accumulation occurred despite the market experiencing a reported drawdown exceeding 40%—precisely the kind of environment where weak hands exit and strong hands accumulate.

Such positioning strongly suggests institutional conviction remains intact for the longer term. History shows that institutions often increase buying during periods of market stress, effectively building positions at lower prices while volatility rewards patient capital. Their structural support, even amid short-term weakness, implies confidence in a bull run continuation at some point.

Momentum Indicators and the $2,000 Threshold

Swing traders are intensely watching the $2,000 to $2,200 range as the next critical test zone. For the bull run narrative to gain traction again, the market would need to show strong buying interest in this range before long entries become attractive. Attempting to catch falling prices carries elevated risk when downtrend signals remain active.

A decisive break below $2,000 would be a warning signal that would shift the bull run outlook materially. Such a move could indicate insufficient buyer demand at current levels, potentially opening the door to a deeper decline toward $1,300 and testing the structural support levels mentioned earlier.

Conversely, if buying emerges near $2,100 and price stabilizes above $2,000, it would suggest the correction within the bull run is finding bottom and setting up for the next leg higher.

What’s Next for Ethereum’s Bull Run? Trading Implications

The $2,100 area now represents a make-or-break level for Ethereum’s bull run. How price responds to this zone—whether buyers step in decisively or selling pressure accelerates through it—will likely define the path of the bull run for the next several months.

Short-term traders should remain cautious until clear evidence of buying interest emerges. Long-term investors watching for accumulation opportunities can monitor institutional flows and the response at key support zones. The divergence between short-term bearish signals and long-term bullish structure remains the most compelling aspect of the current setup.

Conclusion: The Bull Run Awaits Its Verdict

Ethereum faces a pivotal moment. In the short term, momentum favors bears, and futures liquidations combined with poor sentiment have created downside pressure. Yet the weekly structure remains bullish, institutional buying continues, and historical precedent suggests that panic-driven conditions often precede bull run accelerations rather than mark their demise.

The bull run’s fate hinges on the next interaction with critical support levels, particularly around $2,100. Traders and investors should focus on how price behaves at this zone—the answer there will clarify whether this is a healthy correction within a longer bull run or the beginning of something more bearish. For now, the bull run remains in limbo, awaiting the market’s next move.