Ethereum News Today: Ethereum Slides Toward $2,400 as Bearish Technicals Intensify

More Pain For Ethereum? Head And Shoulder Pattern Signals $2,400 Breakdown. The cryptocurrency, already under pressure, has failed to stabilize above key resistance levels, raising concerns about further downside. Technical indicators and price action suggest a continuation of the bearish trend. On-chain data also hints at prolonged bearish momentum in the near term.

Ethereum's price remains below critical levels on the daily chart, with the descending trendline acting as dynamic resistance. A bearish crossover between moving averages looms, potentially leading to further weakness in the coming weeks. Traders are closely monitoring the $3,500–$3,700 supply zone as a potential turning point for buyers.

The 4-hour chart shows a temporary bounce following a false breakdown around $2,750. While the price has reclaimed that level and entered a short-term uptrend, the $3,000 area remains a crucial test. Failure to convert this into support could send ETH back toward $2,900 and beyond.

Market Sentiment and Risk-Off Conditions

The broader cryptocurrency market has been impacted by a risk-off sentiment, with Ethereum and other altcoins like XRP seeing extended declines. Ethereum is currently trading below $3,000, hovering near $2,900 as a short-term support. Technical indicators show increasing bearish momentum, with the RSI dipping toward oversold levels.

Investors are watching for a potential reversal, particularly if the MACD indicator flips into bullish territory. Green histogram bars expanding above the mean line could signal a shift in sentiment. However, the asset remains vulnerable to further sell-offs if macroeconomic signals remain negative.

On-Chain Indicators and Long-Term Outlook

Ethereum's exchange reserves have dropped to their lowest levels in years, indicating reduced sell-side pressure from holders. This trend historically has a bullish bias over the medium term, as coins are moved into cold storage for long-term accumulation. However, the price has yet to reflect this shift, suggesting market participants are still waiting for confirmation.

Despite the accumulation seen in on-chain metrics, short-term technicals remain fragile. A confirmed break above the descending trendline and key moving averages would be necessary for a sustained bullish move. Until then, the bearish outlook is expected to remain in place, with the next key support levels around $2,623 and $2,400.

What This Means for Investors

Ethereum's current price structure suggests a challenging environment for investors. The asset is still within a falling trend and has not shown enough momentum to reverse the broader bearish setup. Traders are advised to remain cautious, especially as key technical levels remain untested.

The market is waiting for a macroeconomic catalyst or a strong bullish signal to justify a reversal. Until that happens, the likelihood of further downside remains high. For now, Ethereum continues to face a critical juncture, with a breakdown to $2,400 signaling a more prolonged bearish phase.