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- Ethereum continues its downtrend, struggling at the $2,000 level, with a breakdown likely triggering further sell-offs.
- The 200-day MA loss at $3,000 confirms bearish momentum, while RSI oversold levels hint at a possible short-term rebound.
- Weak U.S. demand, reflected in Coinbase’s negative premium index, adds pressure, keeping ETH at risk of deeper declines.
Ethereum has been also declining since it has tested the area above $3,600, breaking a series of lower high and lower low formations. The cryptocurrency is now hostage to the $2,000 level, its break below which might set off another wave of selling for the short term.
Ethereum’s Prolonged Downtrend
In the last several months, Ethereum’s decline does not seem to demonstrate any tendency towards stabilization or improvement. The 200-Day MA, which was around $3,000 as support, was breached in February. Several attempts to recapture this level have indicated the prevailing bear pressure which has continued to put pressure on ETH.
Source: TradingView
Nonetheless, after such a periodical sell-off, short-term technical signals indicate a potential recovery. RSI has touched lower limit of becoming oversold which provides an indication of bulls coming back to the market. However, in case Ethereum will not be able to overcome a $2,000 level, the further support at $1,600 can act as a new reversal point to the upside.
Egrag Crypto recently explained his view about X after others speculated that he is bearish on Ethereum. He stressed that it is not about his opinion, but purely coming from his technical angle of view. He further stated that he had purchased ETH at $3,750 with the belief that the currency was set to rise to at least $6,000 to $7,500. However, on sensing some form of weakness, he exited the position at $3,850. This led him to explain that should Ethereum make particular technical signals, he will engage in a trade again.
Source: Egrag Crypto
Weak U.S. Demand Signals
Coinbase’s own Premium Index, which reflects the US investor demand, has been negative for quite some time suggesting subdued institutional and physical buying interest. In the past, negative values on this index have justified and correlated with the persistent Ethereum price downfall. Such movements up from negative territory is considered as potential buying interest by institutions usually suggesting a turn in sentiment in favor of a security.
Source: CryptoQuant
ETH is trading at $1,888 level, and the demand in the U.S. market is still not outstanding, this means there is much more possibility for further decline. However, things remain uncertain in the near future; additional negative market sentiment could see more selling pressure exerted on Ethereum, thus lower support levels.
