Ethereum price action is showing growing downside risk as weakening liquidity and fragile rebounds increase the probability of a deeper rotation toward the $900 range low.

Ethereum (ETH) price continues to trade in a vulnerable position, hovering around a critical support zone known as the point of control (POC). While short-term relief bounces have emerged on lower timeframes, these moves have lacked meaningful bullish follow-through. As a result, Ethereum remains exposed to further downside pressure, particularly as untested liquidity continues to build beneath current price levels.

From a broader market-structure perspective, the ongoing consolidation appears less like accumulation and more like a pause before a continuation. Unless buyers can decisively reclaim control, the risk of a deeper corrective move below $1,000 remains firmly in play.

Ethereum price key technical points

• Ethereum is trading at the point of control, a critical balance level
• Low-volume bounces signal weak demand, raising bull trap risk
• Untapped liquidity sits below range lows, increasing downside probability

Ethereum’s recent bounce from the point of control has been shallow and short-lived. On the lower timeframes, price has shown temporary stabilization, but these moves have not been supported by strong bullish volume. In trending markets, sustainable reversals typically require expanding participation and aggressive buying, neither of which is currently present.

This type of weak rebound often signals a potential bull trap, in which the price briefly moves higher before rolling over and resuming the dominant trend. As long as Ethereum fails to reclaim higher resistance levels with conviction, short-term rallies remain vulnerable to rejection.

Liquidity below price remains unresolved

One of the most important factors influencing Ethereum’s downside risk is the presence of untouched liquidity beneath current price levels. Clean lows remain intact below the market, suggesting that stop-loss orders and resting sell-side liquidity are concentrated beneath support.

Markets naturally gravitate toward areas of liquidity, particularly during corrective or range-bound conditions. Until this liquidity is addressed, Ethereum remains susceptible to a rotation lower, designed to flush out weak positioning and rebalance the market structure.

Loss of point of control signals expansion risk

The point of control represents the price level at which the most trading activity occurs and often acts as a stabilizing force during consolidation phases. However, once the price loses the POC on a closing basis, it typically signals a shift from balance to imbalance.

If Ethereum decisively loses this level, the probability of an accelerated move increases. In this context, that would likely mean a capitulation-style rotation lower as price seeks the next major area of acceptance. Historically, such moves tend to be swift and volatile, particularly when liquidity below price remains untested.

$900 range low comes into focus

From a high-timeframe perspective, the next major downside target sits near the $900 level. This zone aligns with the value area low and the lower boundary of Ethereum’s broader trading range. Previous interactions with this region have resulted in strong reactions, making it a critical area for potential stabilization or reversal.

A move toward $900 would likely coincide with heightened volatility and emotional selling, characteristics often associated with capitulation events. While such a move may appear bearish in the short term, it could ultimately serve as a necessary reset before a more sustainable base can form.

What to expect in the coming price action

From a technical, price-action, and market-structure perspective, Ethereum remains at risk of trading below $1,000 if current support fails.

The combination of weak bounce attempts, unresolved liquidity, and the potential loss of the point of control favors downside continuation toward the $900 range low.

For this outlook to improve, Ethereum would need to regain control with strong volume confirmation and demonstrate acceptance above higher value areas.

SkyBridge Capital’s Founder, Anthony Scaramucci, said Wednesday that he is buying bitcoin amid the falling market, while calling Donald Trump a crypto President.

“So 10 days ago, we were buying Bitcoin at 84,000 last week, you’re buying Bitcoin at 63,000 Bitcoin this week, we’re buyers of Bitcoin in this market, again,” Scaramucci said during a conversation with Bullish’s CEO Tom Farley at Consensus Hong Kong.

He added that buying bitcoin in a downward-trending market is akin to catching a falling knife.

Bitcoin recently crashed to nearly $60,000, after hitting a peak of over $126,000 in October this year. Prices have recovered slightly to $69,000 since then amid signs of capitulation in the bitcoin ETF market.

Scaramucci called President Donald Trump a much better President for crypto than his predecessor, but added that Trump’s geopolitical shenanigans, such as his Greenland ambitions, embolden rival Democrats to oppose him on various policies, including those that affect digital assets.

“I’ll just say to you that, like, the Greenland stuff, believe it or not, is actually tied to the industry. If he does stuff like that, it upsets the opposition to the point where they’re like, You know what? We don’t want him to win on anything, and even if it’s going to spite ourselves and cut our own horses off, we will vote against the crypto bill to hurt Donald Trump,” he explained.

Speaking of Layer 1s, Scaramucci said that programmable blockchain Solana will be one of the biggest market share gatherers.

Former SafeMoon CEO Braden Karony has been sentenced to 100 months in prison for stealing $9 million from the crypto platform’s liquidity pool in 2021 to fund a “lavish lifestyle.”

The sentence on Monday comes nine months after Karony was convicted by a federal jury on charges of conspiracy to commit securities fraud, wire fraud and money laundering in May 2025. 

“Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company to fund his lavish lifestyle,” FBI assistant director James C. Barnacle, Jr. said.

Karony used the stolen proceeds to purchase a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, a custom Ford F-550 and Jeep Gladiator pickup trucks.

“Karony lied to investors from all walks of life — including military veterans and hard-working Americans,” US Attorney Joseph Nocella, Jr. said, adding:

“Today’s sentence demonstrates that there are significant consequences for financial crimes. Our Office will continue to vigorously prosecute economic crimes that harm investors and weaken societal trust in the stability and security of digital asset markets.”

Karony was ordered to forfeit approximately $7.5 million, the Department of Justice said, while the amount of restitution to the victims will be determined at a later date. 

Two SafeMoon execs convicted, one at large

SafeMoon’s former chief technology officer, Thomas Smith, pleaded guilty in February 2025 to conspiracy to commit securities and wire fraud and is awaiting sentencing.

SafeMoon platform’s creator, Kyle Nagy, remains at large, the DOJ added.

Karony is one of many former crypto executives who have now been convicted and sentenced for crimes committed during the 2021-2022 market cycle, when retail market participation was at its peak.