Government troops are locked up in a heavy battle against their former allies, the Fanno rebel movement as they attempt to recover from a horrific loss sustained earlier the week.
Ethiopia government troops have reportedly suffered heavy causalities as the rebels swept major towns and cities in North Shoa and Gondar earlier this week.
Eyewitnesses say thousands of government troops are leaving from Wollega west Ethiopia where they were battling another rebel group and moving to the Amhara region to fight the rebels locally known as the Fannos.
In a dramatic turn of events, the rebels swept the majority of the region earlier this week and the regional governor was forced to flee to Addis Ababa.
Abiy Ahmed appointed deputy chief of staff, four-star general Abebaw Zeleke as the military governor of the region.
Heavy fighting continued on Saturday as government troops attempted to regain control of the Gondar city.
Gondar is a close to the Sudanese border which Abiy Ahmed fears will serve as a weapons gateway for the rebels.
Pro-government media groups admitted the heavy losses in Gondar and Shoa-Robit sustained by government troops. They blamed defecting troops from the Amhara ethnic group for the heavy losses.
US foreign secretary Anthony Blinken claimed he was pleased to have spoken to Abiy Ahmed on Friday. Many suspected the Biden administration has given a green light to Addis Ababa to fight the rebels. But nobody knows what Blinken actually told Abiy. Abiy and the Biden administration resumed relations earlier this year following Abiy Ahmed's decision to reconcile with TPLF rebels which the US supported in the two-year civil war.
Observers say the US wants to use Abiy Ahmed as a proxy to attack neighboring Eritrea which fully supported Russia in the Dombas war.
Abiy Ahmed has not yet officially divorced Eritrea, but his supporters are already claiming Eritrea supports the Fanno rebels.
The Fannos claim they're fighting for an end to what they say "Amhara genocide" committed under Abiy Ahmed's watch in Wollega and Arsi Oromoia regions.
They also say a transitional government, a new constitution and fresh elections are on their agenda.
Abiy Ahmed, Eritrea and Fanno rebels were all allies before the start of the year as they fought TPLF rebels in the two-year civil war. Abiy Ahmed's deal with TPLF broke that alliance.
Abiy has survived multiple attempts to oust him from power in the last five years. Will he survive this one, only time will tell.