Ethereum Holding at $2,000...Warning: "It Will Eventually Fall"

▲ Ethereum (ETH) ©

Ethereum (ETH) is attempting a rebound in the $2,000 range after a prolonged decline, but structurally, it remains unable to escape the bearish trend.

U.Today reported on May 2 (local time) that Ethereum rebounded below the $2,100 mark, with buyers attempting to defend, but this is merely a limited rebound and not yet a trend reversal.

Currently, Ethereum has been maintaining an upward trend by forming higher lows since its February low. However, the price is still moving below the 50-day and 100-day exponential moving averages (EMAs), and both indicators maintain a downward slope. The 200-day EMA is also positioned above, emphasizing that the overall trend remains bearish.

On the upside, the $2,300 to $2,400 range is acting as a key resistance. This area is a technically dense zone where the downtrend line and the 50-day moving average overlap, making it a likely area for selling pressure to concentrate. The current price movement is closer to stagnation than an upward breakout.

Trading volume also does not support a reversal signal. The recent rebound is analyzed to have formed primarily from short-position liquidations and short-term buying, rather than strong buying inflows. Since it is not a long-term accumulation trend, questions about the sustainability of the rise are being raised.

On the downside, the $2,000 range has established itself as a key support level. Repeated defenses have been observed, acting as both a structural and psychological support zone.

However, as time passes without a resistance breakout, the likelihood of retesting this support level increases. If it fails to break above $2,400, the price could retest $2,100 and then face continued downward pressure towards the $2,000 mark.

If the $2,000 level collapses, the decline could extend further, potentially leading to an additional drop to the $1,800 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*