Ethereum Price Risks $2K Retest as Short-Liquidation Fuel Dries Up

Ethereum’s native token, Ether (ETH), has jumped more than 30% from its August lows near $1,800, briefly climbing above $2,500 as short liquidations and renewed buying accelerated its recovery.

But the rally is now running into major technical resistance, raising the risk of a short-term correction toward $2,000.

Ethereum Price Faces Major Resistance Near $2,535

Ethereum’s three-day chart shows ETH testing its 200-period exponential moving average (200-period EMA, blue) near $2,534.

The level has historically acted as an important long-term trend indicator. ETH is also testing a rising resistance trendline connecting its previous 2026 highs, creating an additional hurdle around the same price area.

Meanwhile, Ethereum’s three-day relative strength index (RSI) has climbed to around 74.

An RSI reading above 70 generally indicates that an asset has become overbought, meaning its price has risen unusually quickly and may be vulnerable to profit-taking.

A rejection from the $2,500-$2,535 resistance zone could send ETH toward its 20-period EMA (green) near $2,007.

That makes the $2,000 region an important downside target if the current rally loses momentum.

A decisive breakout above the 200-period EMA, however, would weaken the bearish setup and could allow ETH to extend its recovery.

Ethereum Short-Liquidation Fuel Is Drying Up

The surge from around $1,900 to $2,500 swept through several large clusters of leveraged short positions, according to Binance’s one-month ETH/USDT liquidation heatmap.

When ETH reaches such areas, short traders can be forced to buy back their positions, creating additional buying pressure and pushing prices even higher.

That mechanism appears to have contributed to Ethereum’s latest vertical rally.

But the remaining liquidity above $2,500 is comparatively thin at $422.42 million in cumulative short liquidations, with smaller concentrations visible around $2,550-$2,600.

Meanwhile, larger liquidity clusters have increasingly formed below the current price, particularly around $2,250-$2,350. The largest one exists around the $1,800 level, where $3.28 billion worth of cumulative long positions risk liquidation.

That does not guarantee Ethereum will fall. New short positions could build above the market and provide fresh fuel for another squeeze.

For now, however, the combination of thinning upside liquidity, overbought momentum and major resistance near $2,535 increases the risk that ETH first corrects toward $2,000 before resuming its broader recovery.