In the study of E region irregularities the standard procedure is to Fourier analyze the irregularities in both time and space, that is, to describe them as a superposition of plane waves. This introduces difficulties when the amplitude of the plane waves becomes large, thereby adding nonlinear terms to the original equations and forcing all the plane waves to become coupled to one another. In the present work we stay away from Fourier analysis and use the standard fluid description of the instabilities in the limit of perturbed electric fields that are strictly perpendicular to the geomagnetic field. We obtain a nonlinear generalization of the standard results whereby the diffusion-like operator found in linear theory is now a function of the density itself. Therefore, as the structures grow, the net electric field seen by the ambient plasma inside the structures changes in time: it rotates and its amplitude decreases. Consequently, one possible saturation mechanism for the instabilities is a reduction in the net electric field inside the structures, which brings them to threshold velocity conditions. This being stated, other nonlinear saturation mechanisms remain possible if they require smaller saturation amplitudes than the present work. Either way, our work is consistent with intermittency and implies that the largest amplitude structures in the medium should be rotated away from zero flow angle conditions by a measurable amount. Finally, we show that when compared to an irregularity-free situation, there should be a measurable reduction in the average Hall current carried by the plasma, while the average Pedersen current should not be affected. ¿ 2001 American Geophysical Union