Ethereum (ETH) has faced a sharp pullback in recent days, dropping 14% over the past week. Despite this decline, analysts suggest the recent breakdown may not indicate weakness but could instead lead to the next major upward move. The asset is trading around $3,390 at press time, after gaining 2% in the past 24 hours.
Some technical analysts continue to point toward long-term chart structures and liquidation setups that support the possibility of a bullish continuation.
Pattern Suggests Breakdown Could Precede Breakout
Trader Tardigrade shared a multi-cycle view of Ethereum’s price action on the 3-day chart. The setup shows that ETH has previously entered strong uptrends following breakdowns from support levels. These breakdowns were followed by sideways ranges and later led to major breakouts.
In the latest move, ETH appears to be repeating this structure. Suggesting that the recent price weakness may serve as the starting point for the next upward trend, Tardigrade said,
$ETH/3-day
A breakdown is essential for a massive surge#Ethereum pic.twitter.com/jMexdye4bg
— Trader Tardigrade (@TATrader_Alan) November 6, 2025
Based on this pattern, ETH may be building a base before continuation.
Long-Term Structure Remains in Place
BACH, another market analyst, pointed to a long-term bullish pennant formation still intact on the weekly chart. Ethereum recently reclaimed the $3,000 breakout level, which aligns with the 0.382 Fibonacci retracement of the previous cycle. This area is being monitored as support.
Future price targets based on Fibonacci projections include $7,700, $15,500, and $30,500, with a potential macro top between 2025 and 2026. BACH commented that, “Crypto sentiment [is] completely washed out and in Extreme Fear,” referring to current market conditions that have historically occurred near bottom ranges.
Short-Term Levels and Leverage Signals
Analyst Lennaert Snyder noted that ETH should hold the $3,300 level to maintain higher lows. He added that reclaiming $3,530 would be important.
“If we lose $3,300 with conviction I’m shorting the continuation to probably new lows,” he said.
Liquidation data shows a buildup of short positions between $3,500 and $3,800. If the price moves higher, forced liquidations could push it up quickly. “MAX PAIN IS UP FOR $ETH,” said CryptoGoos, referring to this risk for short traders.
Despite the recent recovery, ETH has struggled to reclaim the $3,600–$3,700 zone. Analyst Ted said the bounce was mostly driven by closed short positions.
“Until Ethereum reclaims the $3,600–$3,700 zone with strong inflows, the chances are it’ll go lower,” he noted.
As CryptoPotato reported, the Taker Buy-Sell Ratio on Binance remains below 1.0, showing more sell pressure than buy volume. This aligns with the broader view that selling has increased, even as buyers are cautiously watching for a reversal.
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