ETH reaches key support, is the Bear Market really here?

The on-chain market is a sea of red. BTC has fallen below $83k, SOL has dropped below $125, and ETH has decreased by -4.1%. The entire crypto market is caught in a sell with bearish market. High leverage liquidations and profitable positions selling pressure are creating a chain reaction, with alts suffering the most.

But this wave of decline is not chaotic. ETH is testing the key support of $2,500-$2,700 — this is an important defense line since June, as well as the 61.8% Fibonacci retracement level. If it can bounce back here, it means the decline may come to a halt; if it breaks, we will have to look at the secondary support of $2,100.

What does on-chain data show?

The total market capitalization of the crypto market has fallen below $2 trillion, hitting a new low since 2021. However, from the 4-hour chart, there are buyers stepping in at major support levels—this is usually a sign of a rebound. But don't rush to bottom fish; wait for ETH to break through the $3,000-$3,200 resistance to confirm the rebound.

What about the long term? After a 43% correction, market sentiment has become extremely fearful. For regular investors, building positions in such extreme fear may actually present an opportunity - but risk management must be in place, as this rebound will not happen overnight.

The key point is to watch this week's closing.