Ethereum Tests Key Level After Breaking Support
Ethereum’s price action has been messy lately—no surprise there. After sliding below what traders were calling an ascending flag pattern, ETH dipped to around $2,100 before bouncing back up. Now it’s hovering near $2,400, retesting the trendline it just broke. That’s usually not a great sign.
If sellers step in hard at this level, we could see another leg down. And honestly, with momentum looking weak, I wouldn’t be shocked if ETH heads toward $2,000 next. That’s a big psychological level, so bulls might try to defend it. But right now, things feel shaky.
What the Charts Are Saying
On the daily chart, the breakdown from that flag pattern was pretty clear. The rebound to $2,400 looks more like a retest than a real recovery. Buyers don’t seem all that enthusiastic—volume’s low, and the price is just sort of… sitting there. If this resistance holds, another drop feels likely.
Switch to the 4-hour chart, and it’s a similar story. ETH bounced nicely from the 0.5–0.618 Fibonacci zone (around $2,100), which often acts as support. But now? It’s stalling right at the lower boundary of that broken flag. Not a great look. If buyers can’t push through soon, we might be in for another dip.
The $2,100 area is still key. If that gives way, $2,000 is the next obvious stop. But if it holds, the bulls might still have a shot.
Traders Are Losing Steam
Here’s the thing—funding rates in the futures market have been dropping. That usually means traders aren’t as bullish as they were. When funding rates cool off like this, it often signals a pullback is coming.
But it’s not all bad. When rates get close to neutral, it can also mean the market’s resetting. Too much leverage gets flushed out, and things stabilize. So while ETH might dip further in the short term, this could set the stage for another move up later.
For now, though, the pressure’s on. If $2,400 holds as resistance, the path of least resistance seems to be down. But crypto’s unpredictable—wouldn’t be the first time it fooled everyone.
