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As Bitcoin fails to sustain above the $96,000 mark, the growing bearish influence in the crypto market plunges Ethereum. The Ethereum price is now down under $2,700, registering an intraday pullback of 2.28%.
The pullback undermines last night’s recovery and is threatening a new possibility of a breakdown rally. Amit such conditions will Ethereum manage to make a comeback and break past the $2,700 mark?Let’s find out.
Ethereum Price Breaks Under $2,700
In the daily chart, the Ethereum price trend continues its lower-high trend formation. After failing to cross above the $4,000 mark, Ethereum is now back to retest the local long-coming support trendline.
The support trendline has held Ethereum prices since September 2024. Recently, the Ethereum recovery challenged the 20-day EMA line, but failed to sustain momentum.
This resulted in a failed attempt to break past the 38.20% Fibonacci level at $2,784. This key resistance has held Ethereum prices below it since early February.
Currently, the bounce-back from the local support trendline is failing to cross past the 38.20% Fibonacci level. With the intraday pullback, the Ethereum token is now trading at a market price of $2,681.
The lower price rejection in the bearish candle reflects bullish support at lower levels. This increases the chances of a comeback for Ethereum to break past the overhead ceiling.
In case of a bullish breakout, the uptrend is likely to reach the 200-day EMA line near the $3,000 mark.
Supporting the upside, the daily RSI line is making a bullish reversal from the oversold boundary level. However, the declining trend in the dynamic average lines poses a massive threat.
The recent death cross between the 50-day and 200-day EMA lines, followed by the chances of a 100-day and 200-day EMA crossover, warns of a potential downfall.
In case of a breakdown of the support trendline, the Ethereum price is likely to test the $2,224 support level.
Ethereum Whales Show Weak Confidence
Supporting the chances of a breakdown, Ethereum whales are showing weak signs of confidence. Recently, a whale deposited 5,000 ETH worth $13.57 million to Binance.
The whale has returned to the market after nearly three years of dominance. Additionally, another whale has deposited a total of 8,000 ETH worth $21.65 million.
Apart from this, a different whale has lost hope in its DeFi tokens. The entity has deposited 2,390 ETH worth $6.7 million.
Besides Ethereum, the whale has also deposited Aave and Compound worth $2.19 million and $132,000, respectively. As whale sentiment weakens, the chances of a further downturn in Ethereum increase.