Ethereum ($ETH ) has come under renewed selling pressure over the past 24 hours, trading lower as broader crypto market weakness continues 📉. The decline follows another round of leveraged liquidations in derivatives markets, where hundreds of millions of dollars in ETH positions were force-closed amid rising volatility.



Market sentiment remains cautious as traders react to declining momentum and reduced spot demand. With Ethereum now approaching a technically sensitive price zone, analysts suggest the next few sessions could be critical in determining whether the move extends lower or stabilizes.



According to on-chain analysts, Ethereum’s current positioning reflects a market caught between long-term structural strength and short-term risk aversion.






Ethereum Trades Below Key Holder Cost Basis as Risk Increases ⚠




Recent price action has pushed Ethereum below levels closely aligned with the average cost basis of short- and mid-term holders, a development that historically increases downside pressure. When a large portion of holders move into unrealized losses, sell-side activity often rises as confidence weakens.



From a technical perspective, Ethereum has lost several intermediate supports and is now consolidating near the $2,200–$2,300 zone, an area that previously acted as a demand region during earlier corrections 🔄. The loss of momentum indicators and declining trading volumes suggest buyers remain hesitant to step in aggressively.



At the same time, exchange data indicates a gradual uptick in ETH inflows 🏩, which can signal preparation for selling rather than accumulation if the trend persists.






What Comes Next for Ethereum? 🔍




In a bearish scenario, analysts warn that a daily and weekly close below the $2,200 level could open the door to further downside. If selling pressure intensifies, Ethereum may drift toward the $2,050–$2,000 range, where historical volume clusters could offer temporary support.



A breakdown below that region would likely reinforce bearish momentum and delay any meaningful recovery attempt.






Upside Scenario Depends on Reclaiming Lost Levels 📈




On the other hand, a stabilization followed by a reclaim of $2,400–$2,500 would help neutralize immediate downside risks. This zone now acts as first resistance, with a stronger technical barrier near the 200-day moving average, often used to gauge medium-term trend direction.



A sustained move above $2,700 would significantly improve market structure and suggest renewed confidence among both spot and derivatives participants 🚀. However, analysts note that such a recovery would likely require broader market strength rather than ETH acting alone.



At the time of writing, Ethereum is trading near $2,300, reflecting continued volatility and cautious sentiment across the crypto market.