Ethereum faces another bullish failure, reversing from the $2,750 resistance zone. With a bearish crossover in EMAs and declining momentum, will ETH drop to $2,400?
With Bitcoin crashing under the $96,000 mark, Ethereum’s price recovery rally quickly hit the brakes. The move marked another bullish failure in Ethereum to cross above the $2,750 supply zone.
With an intraday pullback of 2.90%, ETH is back at a market price of $2,663. Will this bullish failure drop Ethereum back to $2,400? Let’s find out.
Ethereum Price Takes Another Reversal
In the daily chart, the Ethereum price trend maintains a declining flow as the broader market remains volatile. Taking a double-top reversal in late 2024, Ethereum is now down by nearly 35%.
As the formation of the lower-high trend continues, Ethereum has found short-term support at $2,600. Currently, the short-term consolidation challenges the overhead supply zone near $2,750.
However, the recent intraday pullback has undermined the 3% surge last night, which attempted to challenge the overhead ceiling. With another reversal, Ethereum is now likely to retest the $2,600 support level.
A bearish closing price will likely test the immediate support level near $2,400. Increasing the chances of a bearish continuation, the recent death cross between the 50-day and 200-day EMA triggers a sell signal.
Furthermore, the declining 100-day EMA is on the verge of crashing under the 200-day EMA line. This will mark another sell signal from the dynamic EMA lines.
Additionally, the intraday pullback has undermined the recent crossover in the MACD and signal lines. With a drop in bullish histograms, the MACD and signal lines are likely to regain a bearish alignment.
Ethereum Saviors: ETFs and Declining Exchange Reserve
Despite being an underperformer among the top cryptocurrencies, Ethereum has some hope of reversal. Over the past few weeks in February, the U.S. spot Ethereum ETFs have seen an inflow of 145k ETH tokens.
This is almost seven times more than all of January’s inflows. The growing institutional demand signals a potential recovery ahead.
Furthermore, a recent post on X by Santiment highlights a massive movement of Ethereum away from exchanges.
In particular, since Ethereum’s inception, the supply on exchanges has reached its lowest point. Now, just 6.38% of the total available supply remains on exchanges. Additionally, 9.2% of all discussions about altcoins are currently focused on Ethereum.
As the market engages more with Ethereum and institutional support grows, the second-largest cryptocurrency may be poised for a bullish rebound.
If this happens, Fibonacci price action analysis suggests the next resistance level near the 50-day EMA at the psychological $3,000 mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
