Ethereum (ETH) has been facing a difficult period in recent weeks, with a lack of buying momentum and slow price progression. As a result, the short-term price outlook for ETH appears bearish, with several technical indicators suggesting that a liquidity hunt may be on the horizon.

Weak Price Action and Limited Buyer Support

Ethereum’s price action has shown weakness across multiple timeframes. The past month has been particularly challenging, as the cryptocurrency has struggled to gain significant upward momentum. While ETH briefly tried to push past the $2.8k resistance level, it has failed to hold above it, and selling pressure continues to dominate the market.

In a previous analysis, it was noted that Ethereum encountered significant resistance at $2.8k. This resistance level has proven difficult to overcome, with profit-taking seen in the spot ETFs last week. Additionally, the Korea Premium Index, which tracks demand from East Asia, saw an increase, indicating that there may still be some buying interest in the region. However, this hasn’t been enough to propel Ethereum higher.

Bearish Structure Confirmed on Multiple Timeframes

On the 12-hour chart, Ethereum’s On-Balance Volume (OBV) reached a multi-month low, signaling a decline in buying activity. While this drop in OBV is not overly concerning by itself, it highlights a lack of buying interest in the short term. More importantly, the 1-day and 3-day OBV indicators have remained flat since December, further confirming the bearish price structure.

Moreover, the Relative Strength Index (RSI) remains just below the neutral 50 level, indicating that the market is not in a strong buying position. The lack of upward momentum, coupled with the failure to reclaim the $2.8k level, suggests that the bullish forces are lacking the strength to break through this resistance.

4-Hour Chart Reaffirms Weakness

Further confirming the bearish trend, the 4-hour chart reveals similar signs of weak buying pressure. Although the RSI briefly moved above 50, the overall structure of the chart remains bearish. ETH has been forming higher lows over the past week, but this does not indicate a strong trend reversal. Without a breach of the recent lower high at $2,880, there is little reason to expect a breakout to the upside.

The slow price progress combined with a lack of momentum sets the stage for a potential liquidity hunt, where Ethereum’s price may be pulled towards key levels on the chart.

Key Support and Resistance Zones

According to the Ethereum liquidation heatmap, the $2.9k and $2.5k levels are the most significant price zones to watch in the short term. The $2.9k level is closer to the current price and may serve as a short-term target for the market. However, this level also coincides with a higher timeframe resistance zone at $2.8k-$2.85k, which has already proven difficult for Ethereum to break.

In the event of a move towards $2.9k, a retracement back to the $2.5k or $2.6k level is anticipated. This would indicate a further decline in Ethereum’s price, reinforcing the bearish outlook for the coming days.

Conclusion: Short-Term Bearish Pressure for Ethereum

In conclusion, Ethereum’s short-term price outlook remains bearish due to a combination of weak buying pressure, slow price progress, and a lack of momentum. The $2.8k resistance zone remains a significant barrier, and ETH’s price is likely to continue facing downward pressure in the near future.

With key support levels at $2.5k and $2.6k, Ethereum could experience a retracement after a potential move toward $2.9k. Traders should remain cautious as the current market structure does not favor a strong upward move in the short term.