Ethereum is once again under pressure as broader market sentiment shifts bearish. The second-largest cryptocurrency has dropped to $2,400, marking a 3.74% decline in the past 24 hours. This drop comes as Bitcoin also falls back under $103,000, signaling a wider market correction that could drag prices even lower.
Technical indicators are flashing warnings, and analysts suggest that Ethereum could decline further, possibly testing the $2,200 support zone if current market trends continue. Despite these bearish signals, some bullish sentiment lingers—especially among large investors known as whales.
Ethereum Faces Key Technical Test
Ethereum’s current price action on the daily chart shows a failed breakout above a key resistance level near $2,700. This level corresponds with the neckline of a rounding bottom pattern, formed after a bullish breakout from a falling channel.
However, Ethereum’s inability to hold above the neckline has triggered a retreat to the 38.2% Fibonacci retracement level, now acting as immediate support around $2,400. As of writing, Ethereum is trading at $2,403—below the 200-day Exponential Moving Average (EMA), a key long-term trend indicator.
If Ethereum fails to hold this level, the next crucial support lies at the 100-day EMA around $2,193. A breakdown below this point could pave the way for a deeper correction toward the psychological support level of $2,000.
Technical indicators further support a bearish outlook. The MACD (Moving Average Convergence Divergence) is on the verge of a negative crossover. If confirmed, this signal could invalidate the rounding bottom pattern and suggest an extended bearish phase.
Whale Activity Points to Long-Term Confidence
Despite the bearish technical setup, there’s evidence that major investors are seeing opportunity in the current dip. According to data from CryptoQuant, wallets holding between 10,000 and 100,000 ETH have increased their holdings significantly.
Crypto analyst Ted Pillows reports that whale addresses now hold 16.79 million ETH, an increase of $1.25 billion in Ethereum over the past month. This uptick in large-scale accumulation is widely viewed as a bullish sign, suggesting that big players expect a strong long-term rebound.
Pillows added his personal optimism on social media, stating, “My bags are ready,” indicating his belief that Ethereum is primed for a potential breakout once market conditions stabilize.
Potential Scenarios for Ethereum
In the short term, Ethereum is at a critical juncture. If the price continues to fall below key support levels, traders could see a retest of $2,200 or even lower. The $2,193 level, which aligns with the 100-day EMA, will likely serve as the next line of defense for bulls.
On the flip side, if Ethereum manages to hold the $2,400 level and regain upward momentum, a push back toward $2,700 could be on the table. More bullishly, a confirmed breakout above that neckline resistance could send Ethereum rallying toward the $4,000 mark, especially if broader market sentiment turns positive.
The broader crypto market is currently facing macroeconomic headwinds, including concerns over U.S. interest rate policy. These factors may continue to apply downward pressure in the short term. Still, whale accumulation and long-term investor interest offer a reason for cautious optimism.
Conclusion: Key Levels to Watch
Ethereum’s fall to $2,400 is a clear sign of the current bearish momentum across the crypto market. As technical indicators lean bearish and key support levels are tested, all eyes are on whether Ethereum can hold the $2,200 mark.
However, strong whale accumulation and bullish long-term patterns suggest that Ethereum’s fundamentals remain intact. Traders and investors should watch for stabilization near current support zones and monitor broader market trends before making decisive moves.
With volatility expected to continue, the next few days will be critical for Ethereum’s near-term direction.
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