I thought it was a bull market... Ethereum's bearish warning light is back on

▲ Ethereum (ETH), bear market, decline/ChatGPT generated image ©

Despite Ethereum securing support from whale accumulation and institutional demand, a warning has emerged that if it fails to surpass the $2,377 resistance, the pressure to retest the $2,252 support level could intensify again.

According to TradingNews, an investment media outlet, on April 23 (local time), Ethereum (ETH) traded around $2,317 after moving within the range of $2,316.88 to $2,422.86 during the day, dropping 3.44% on a daily basis. The market capitalization was presented at a level between $233 billion and $282.51 billion depending on the aggregation standard, with a 24-hour trading volume of $20.31 billion and a circulating supply of 120.7 million ETH. While the recent one-month increase rate is 13.38% and the one-year increase rate is 29.66%, it is still approximately 53% lower compared to its all-time high of $4,953.73 recorded on August 24, 2025.

The most notable change on the chart is the step-like rebound structure formed since the February low. The price showed signs of consolidating its base by raising its lows from $1,840 to $1,960, then to $2,100, and again to $2,350. However, in this current period, a bearish divergence in the Relative Strength Index (RSI) occurred for the second time in the last five weeks. After the RSI high of 66.54 on March 16, the price made a higher high on April 22, but the RSI failed to follow, which was interpreted as a sign of slowing upward momentum. The previous similar signal led to an 8.88% correction, with the support level forming at $2,252 at that time.

This time, whale movements have emerged as a variable. Whale holdings, which were 123.75 million ETH on April 19, increased to 123.91 million ETH on April 22, confirming a net accumulation of approximately 160,000 ETH. This is a different pattern from the previous correction phase where whales reduced their holdings. Additionally, a $90.9 million 20x leveraged long position, the launch of OCBC's Ethereum-based tokenized gold fund, demand for BlackRock's ETHB ETF, the completion of the Ethereum Foundation's 70,000 ETH staking goal, and the launch of Aave V4 were also presented as backgrounds for a medium-term bullish outlook.

The short-term turning point is clear. On the upside, the 0.236 Fibonacci retracement level of $2,377 is presented as the invalidation line for a bearish scenario. If this level is broken on a daily close basis, the view could open up to $2,455, then $2,517, $2,580, and even $3,112. Conversely, on the downside, $2,252 is a key support level. This area overlaps with the cost basis of 716,028 ETH accumulated between $2,231 and $2,250. If this support level breaks, the next demand zone is suggested to be between $2,067 and $2,085, where 1,417,672 ETH are concentrated.

The derivatives market also sent caution signals. Open interest is approximately $12.3 billion, similar to the level before the previous correction, but unlike then, funding rates have turned slightly positive, indicating the market is leaning towards long positions. This means that if a rebound occurs, long liquidations rather than a short squeeze could amplify the decline. Ultimately, while Ethereum holds long-term positive factors such as institutional demand and supply reduction, it is currently at a critical juncture where the breakthrough of $2,377 and the defense of $2,252 will determine its direction.

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