Ethereum is struggling once again as bearish forces take control. With Bitcoin tumbling below $96,000, ETH failed to sustain its recovery, reversing from the $2,750 resistance. A weakening technical setup and increased selling pressure are now fueling concerns of a potential dip to $2,400. The possible reason could be low trading volume and rising gas fees, along with record-high ETH supply, signal further downside. While the outlook remains bearish as the market is still under the trend line resistance, there are some signs of a rebound. Let’s dive in.
Detailed Technical Analysis for Ethereum
Current Market Context
Ethereum is currently trading at 2,681.74 USD, having decreased by 63.50 USD or -2.31% today. The daily chart shows a clear downtrend since the beginning of February after reaching a high of 3,183.69 USD.Trend… pic.twitter.com/dfFZRktjOh
— Token talk (@Call4Tokentalk) February 18, 2025
ETH Fails to Hold $2,750, Slips to $2,663
Ethereum’s recent rally lost steam as it failed to clear the critical $2,750 supply zone. The rejection led to a 2.9% pullback, bringing ETH down to $2,663. The broader market remains volatile, and Ethereum’s price action continues to form lower highs, signaling bearish momentum.
Currently, ETH is holding short-term support at $2,600. However, a stronger breakdown could accelerate losses, bringing $2,400 into focus. The death cross between the 50-day and 200-day EMAs, coupled with a declining 100-day EMA, has further suggested a bearish outlook.
Can Institutional Demand Save Ethereum?
Despite its underperformance, Ethereum still has some bullish catalysts. U.S. spot Ethereum ETFs have recorded an inflow of 145k ETH in February, a significant jump compared to January. Additionally, Santiment reports that ETH’s supply on exchanges has dropped to an all-time low, suggesting strong accumulation.
If Ethereum manages to hold above $2,600 and sentiment shifts, a rebound toward $3,000 remains possible. However, if bears continue to dominate, ETH could soon test the $2,400 support zone.
Signs of Rebound?
According to Santiment’s X post, Ethereum is showing signs of recovery, climbing to $2,745 and outperforming most altcoins. A key factor behind this trend is the rapid movement of ETH from exchanges to cold wallets, with only 6.38% of its total supply now available for trading—the lowest since its inception. This is generally a positive sign as investors are holding onto their ETH, reducing selling pressure. Plus, market sentiment around Ethereum is improving after a weak 2024, with many anticipating a stronger rebound when broader crypto markets recover.
However, they also note that this is a long-term indicator rather than something that directly impacts short-term price swings.
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