Ethereum Dips Below $2,400: Will Bears Drive It Under $2,000?
Ethereum is facing a challenging period, mirroring Bitcoin's trajectory as it nears November 2024 levels. After a significant drop of over 10% last night, ETH continues to decline, with an intraday loss of 5.04%.
Market Volatility and Support Levels
Ethereum is struggling to find stable support amidst high market volatility. The question remains: Will Ethereum dip below $2,000?
Technical Analysis: Sliding Channel Breakdown
The daily chart reveals a descending channel pattern for ETH. From its swing high of $4,000, Ethereum has plummeted over 40%. Currently trading at $2,380, ETH saw a lower price rejection from the 24-hour low of $2,319.
The broader market sentiment suggests a potential further decline, while short-term rejections hint at a possible return within the channel. The 100 and 200-day EMA lines are nearing a bearish crossover, supported by two consecutive bearish candles. Additionally, the MACD and signal lines indicate a trend reversal.
Potential Price Targets
Technical indicators suggest a possible breakdown of the descending channel. If Ethereum fails to hold above the channel's lower boundary, increased selling pressure could accelerate the drop.
Fibonacci levels indicate that the channel breakdown might find support around $2,224. However, closing below this level could threaten the $2,000 support zone. A further decline could see Ethereum dropping to $1,740. Conversely, a bullish reversal could challenge the 78.6% Fibonacci level near $2,600.
Ethereum ETFs Experience Net Outflow
US Ethereum spot ETFs saw a net outflow of $78.09 million on February 24. Out of the nine Ethereum ETFs, four remained negative. BlackRock experienced an outflow of $48.21 million, while Grayscale saw $15.45 million. Bitwise and Grayscale also reported negative flows, with ARK and 21Shares still updating their net flows.
