ETHUSDT - Testing Major Demand? — Reversal or Deeper Correction?

On the ETH/USDT 1W timeframe, price is currently in a corrective phase after a strong rally that previously pushed toward the ATH area around 4.9K.

Current market structure shows:

A decline from the swing high forming a lower high

Selling pressure still dominant in the mid-term

Price approaching historical demand areas that previously acted as accumulation bases


Two major demand zones are highlighted in yellow as potential buyer reaction areas.


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Key Demand Zones

Demand Zone 1 (Buy 50%)
Range: $1,675 – $1,475

This zone represents:

A consolidation base before the 2024 bullish impulse

Previous strong buyer reaction area

Valid weekly support historically



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Demand Zone 2 (Buy 50%)
Range: $1,150 – $1,000

This zone represents:

Macro support during early accumulation phase

Higher timeframe last defense for buyers

Extreme discount zone in case of capitulation



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Structure & Pattern Formation

Several structural indications are visible:

1. Distribution → Markdown Phase

After failing to hold the highs, price formed a distribution structure and entered a markdown phase.

Characteristics:

Lower high formation

Breakdown from minor supports

Increasing bearish momentum



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2. Potential Wyckoff Re-Accumulation / Deep Accumulation

If price enters the demand zones, there is potential formation of:

Spring

Shakeout

Secondary Test


This often becomes the foundation for a major weekly reversal.


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3. Range Expansion Setup

The yellow projection arrow on the chart indicates a potential range expansion after the accumulation phase completes.


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Bullish Scenario

Bullish confirmation occurs if price shows strong reaction inside Demand Zone 1 or 2.

Triggers:

Weekly bullish engulfing

Long wick rejection

Minor structure break

Increasing volume on bounce


Upside Targets:

1. $2,350 – Mid-range resistance


2. $2,950 – Minor supply


3. $3,550 – Previous distribution zone


4. $4,300 – Major resistance


5. $4,900+ – ATH retest



If accumulation succeeds, a new bullish cycle could begin toward the next markup phase.


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Bearish Scenario

Bearish continuation is likely if:

Demand Zone 1 breaks without meaningful reaction

Weekly close below $1,475

Selling volume expands


Downside Targets:

1. $1,150 – Demand Zone 2 test


2. $1,000 – Psychological support


3. Sub $1K – Capitulation scenario



A breakdown below the second zone opens deeper macro correction potential before reversal.


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Conclusion

ETH is in a weekly corrective phase after high-timeframe distribution

Two demand zones are critical buyer reaction areas

Strong rejection = accumulation start & major bullish potential

Breakdown = continued markdown to deeper supports


Current structure favors a wait & react approach at demand, not chase buying.


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