Ethereum Tests Vital $2.4K Demand Zone as Weekly Correction Deepens

The broader digital asset market is closely watching ETH chart patterns as Ethereum experiences an ongoing downward correction, falling approximately 7% over the past seven days. The decline has brought the second-largest cryptocurrency down to test crucial support levels, leaving market participants uncertain about whether the pullback will stabilize or lead to deeper losses.

As reported by CryptoPotato, technical charts show ETH interacting with a major demand zone situated between $2,360 and $2,440. While dip-buyers have repeatedly stepped in to spark short-term price rebounds within this band, the formation of persistent lower highs indicates that bears continue to maintain the upper hand on daily timeframes.

This price compression follows several weeks of subdued momentum across major altcoins, driven by selective liquidity distribution and macro headwinds. Although Ethereum fundamentals remain anchored by layer-2 activity and staking participation, spot trading appetite has cooled relative to previous quarterly highs.

Technical analysts warn that a failure to defend the current support confluence could trigger a liquidity sweep toward lower historical levels. Conversely, holding above the $2.36K threshold could form the base for an eventual consolidation phase, provided broader market sentiment stabilizes.

Traders are now closely observing daily closing candles around the $2.4K mark and watching spot volume for signs of institutional accumulation. A decisive break below this demand cluster would invalidate immediate bullish recovery theses, while a strong volume-backed push higher is required to break the downtrend.