Ethereum is currently navigating a pivotal moment as it tests the significant support level of $2,100, following a sharp decline from weeks of stable trading. The cryptocurrency has experienced a notable downturn after failing to maintain its position within a defined consolidation range that persisted through the latter part of 2025 and early 2026.
In early February, sellers gained dominance, driving the price down into the $2,100 region. This recent movement marks a crucial juncture for ETH, as traders are closely monitoring whether this support will be sustained or if it will lead to further declines. The upper boundary of the previous trading range was clearly marked between $3,300 and $3,400, while support consistently hovered in the upper $2,000s.
After several unsuccessful attempts to break out to the upside, Ethereum finally broke through the lower limit of this range, resulting in aggressive selling activity. The appearance of strong bearish candles during this decline indicates a significant shift in market sentiment, with sellers firmly taking control.
If the $2,100 level holds, there is potential for a Power-of-3 recovery pattern to emerge. In this scenario, the sharp decline signifies an expansion phase after a period of consolidation, suggesting that ETH could enter a stabilization and recovery phase. Chart analysis indicates that if buyers manage to defend the current support, a rebound could propel the price back toward the $3,000 mark.
This situation is particularly important for the broader cryptocurrency market, as Ethereum serves as a key barometer of market sentiment. A successful defense of the $2,100 support would imply that the recent downturn is merely a correction, not the onset of a more extensive bearish trend. Conversely, if this support fails, it could lead to further downward pressure and prolonged consolidation, altering market expectations for ETH and potentially impacting the entire cryptocurrency ecosystem in the weeks ahead.
