Crypto Quill

Ethereum is feeling the heat. After Bitcoin retraced to November 2024 levels, Ethereum has been following suit, shedding over 10% overnight. The selling pressure remains high, with ETH posting a fresh intraday decline of 5.04%. The question now: will the bears push it below $2,000, or is a rebound in sight?

Bearish Pressure Intensifies as Ethereum Struggles for Support

Ethereum is locked in a downward spiral, showing no signs of immediate recovery. The sell-off has intensified, wiping out nearly 40% of its gains from the recent $4,000 high.

Currently, ETH is hovering around $2,380, bouncing slightly from an intraday low of $2,319. While this might seem like a potential support level, technical indicators suggest otherwise. Market sentiment remains weak, and Ethereum’s price action indicates a strong chance of further downside.

• The 100-day and 200-day moving averages are on the verge of a negative crossover—typically a bearish sign.
• The MACD and signal lines are hinting at a deeper trend reversal.
• A falling channel pattern signals a looming breakdown, which could accelerate the decline.

If Ethereum fails to hold above its current channel, sellers could gain control, potentially sending prices tumbling toward critical lower support zones.

Key Price Levels: How Low Can Ethereum Go?

Ethereum’s price structure is dictated by Fibonacci retracement levels, which highlight potential support and resistance zones.

The first major test comes at $2,224—a level where buyers may attempt to step in. However, if ETH breaks below this, the next critical support sits at $2,000. This psychological barrier could either act as a strong bounce point or open the floodgates for an even steeper decline.

The Fibonacci projections point to an extended move down to $1,740 if the bearish breakdown gains momentum. On the flip side, a surprise bullish move could see Ethereum attempt to reclaim the 78.6% Fibonacci level near $2,600.

For now, all eyes are on the $2,224 level. A break below this could accelerate selling pressure and force Ethereum toward the dreaded $2,000 mark.

Ethereum ETFs Record Massive $78.09 Million Net Outflow

Institutional investors aren’t helping Ethereum’s case. On February 24, US-based Ethereum spot ETFs witnessed a combined net outflow of $78.09 million, adding to the bearish outlook.

The breakdown of these outflows is particularly concerning:

ETF Provider	Net Outflow ($M)
BlackRock	48.21
Grayscale	15.45
Bitwise	Bearish stance
ARK & 21Shares	No update yet

Of the nine Ethereum ETFs, four showed strong bearish sentiment, while the remaining either maintained zero net flow or have yet to update their numbers.

A prolonged ETF outflow trend could put additional downward pressure on Ethereum’s price. Institutional selling, coupled with weak technical indicators, suggests that Ethereum may not be out of the woods yet.

What’s Next?

Ethereum is facing one of its biggest tests in months. With prices struggling to find firm support and institutional investors pulling funds, the possibility of ETH dropping below $2,000 is growing.

While a short-term bounce is possible, the broader sentiment remains cautious. The coming days will be critical in determining whether Ethereum finds stability or continues its descent toward lower price levels.