The cryptocurrency market is experiencing significant volatility, with the total market cap dropping 3.62% in the last 24 hours. Bitcoin (BTC) and Ethereum (ETH) have both seen substantial declines, contributing to over $1.03 billion in total liquidations, a large portion of which, $725 million, originated from long positions.
While ETH is down more than 4% today, a notable fractal setup is emerging on its chart. This pattern bears a striking resemblance to a previous structure that preceded a major reversal in April 2025.
Fractal Setup Hints at a Reversal
Observing the daily timeframe, Ethereum's price action appears to be replicating a familiar pattern.
In late 2024, ETH established a clear upward movement from point 0 to point 1. This was followed by a corrective decline contained within a falling wedge. This correction extended down to the 2.0 Fibonacci extension level, which served as a robust support zone. From this point, ETH experienced a sharp bounce, broke out of the wedge, and initiated a significant bullish reversal.
Currently, ETH seems to be following a similar trajectory.
The price has once again completed a 0 → 1 upside leg and has subsequently entered another falling wedge formation. This recent correction has driven ETH directly into the 2.0 Fib extension region, which is currently positioned around $2,930. This area represents the same structural support that fueled the prior reversal. ETH is beginning to exhibit early signs of strength in this zone, suggesting that buyers might be defending it, much like they did previously.
What’s Next for ETH?
Should the fractal pattern continue to repeat, the 2.0 Fibonacci level could potentially serve as a launchpad for a rebound. A strong positive reaction from this zone, followed by a breakout above the falling wedge and a successful reclamation of the 50-day moving average, would indicate a shift in momentum towards the upside. This scenario would closely mirror the recovery observed in late 2024.
However, if ETH is unable to maintain support at the $2,930 level, the validity of the fractal pattern would be compromised. In such an event, the price could trend lower, potentially heading towards the $2,600 region before finding its next significant base.