At Consensus, Tom Lee (executive at BitMine) highlighted that Ethereum’s current decline closely resembles every major sell-off since 2018 that later turned into sharp V-shaped recoveries.

His view is supported by the timing framework of Tom DeMark, whose indicators are widely followed by institutional desks, including traders such as Paul Tudor Jones.

🔎 Key Technical Level to Watch

$1,890 – “undercut” zone

This level is not just support.

It represents a potential liquidity sweep where:

stops are flushed,

sellers fail to extend downside,

and price quickly reclaims the level.

Historically, this behaviour has marked Ethereum’s cycle bottoms.

📉 Current Market Structure

Support

$1,850 – $1,900 (active buyer zone)

Resistance

$2,000 (psychological pivot)

$2,100 – $2,150 (short-term supply zone)

Trend resistance

50-day SMA near $2,800

Price is still below trend resistance, but repeated defenses of the $1,850–$1,900 range show visible absorption.

📊 Momentum Snapshot

RSI has rebounded from deeply oversold conditions.

Selling pressure is slowing.

No strong downside continuation despite repeated tests of support.

This is a classic early-stage accumulation profile.

🧠 Why this setup matters

Ethereum has suffered eight drawdowns greater than 50% since 2018.

Every single one transitioned into a fast upside recovery after a final downside sweep.

The present structure is statistically aligned with those prior bottoms.

🎯 Scenario Map

Base case

Final sweep near $1,890

Quick reclaim above $1,900

Rotation back through $2,000

Test of $2,100–$2,150

Risk case

Daily close below $1,850

Expansion toward $1,750

Delayed base formation

🧭 Market Takeaway

Ethereum is trading inside a historically proven bottoming window.

The $1,890 undercut zone is the primary reference for a completed downside cycle, while $2,000 and $2,150 remain the first confirmation levels for recovery.

Until a decisive break below $1,850 occurs, the structure increasingly favours accumulation over continuation.

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