ETH bear market downturn is not over | Credit: Hameem Sarwar
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Key Takeaways
Ethereum’s rebound above $1,900 lacks strength, as it risks falling towards $1,600.
Funding rates remain slightly negative, and open interest shows only modest growth.
A break above the 0.236 Fib resistance at $2,504 could open a path toward $2,981.
Ethereum (ETH) has surged, and headlines are turning optimistic. Still, the chart refuses to confirm the hype.
The push above $1,900 lacks strength, and volume stays muted.
With trend resistance holding firm, what looks like a recovery could actually be a prelude to an Ethereum price fall toward $1,600.
Sideways Movement Signals Uncertainty
ETH is attempting a short-term rebound after bouncing from a critical demand zone. However, the broader structure still favors consolidation rather than a confirmed reversal to the bullish side.
The trend remains bearish on the higher swing structure. ETH’s price previously fell from the $2,900 region. Then it printed a local bottom near $1,780.
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If buying pressure persists and ETH’s price breaks above the resistance level, continuation toward $2,300 becomes likely.
Other Factors Add to the ETH Pressure
On the derivatives charts, the funding rate sits slightly negative at -0.0033%, while open interest has risen only 1%, highlighting cautious trader sentiment.
Meanwhile, selling pressure is building, with analysts noting activity from both whales and high-profile wallets.
“A whale has opened a $39.7 million $ETH short with 15x leverage. Liquidation Price: $3,360.” Max Crypto reported,
At the same time, since the beginning of February, Ethereum co-founder Vitalik Buterin has sold over $13.6 million worth of ETH
“Vitalik keeps selling his $ETH.Fundamentally, these developments highlight persistent downside risk,” Lhzr noted.
With major resistance at $2,504 holding firm, Ethereum’s price remains vulnerable to another downturn.
So, unless bulls can push decisively above that level, the cryptocurrency looks poised to slide back toward $1,600.
ETH Price Forecast: Downside Risk Remains Intact
On the daily chart, Ethereum’s price stabilized just above $1,900 after bouncing from $1,734.
Short-term buying is visible, but the cryptocurrency remains trapped in a descending channel, with each upward attempt capped by persistent selling.
Momentum shows fleeting optimism; the Chaikin Money Flow (CMF) is positive, and the Moving Average Convergence Divergence (MACD) hints at a bullish crossover.
Yet resistance at the 0.236 Fib level at $2,504 and the 0.382 Fib level at $2,981 remains a wall for bulls.
Breaking above $2,505 could push ETH toward $2,974, opening the door for a sustained rally. A move past $2,981 would signal a stronger reversal and potential test of $3,000.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
