As Bitcoin Fails to Hold Above $96,000, Ethereum Price Declines

As Bitcoin struggles to maintain its value above the $96,000 mark, bearish trends are impacting the crypto market, particularly Ethereum. The Ethereum price has dipped below $2,700, reflecting an intraday pullback of 2.28%.

The recent decline threatens the potential recovery observed last night and raises concerns over a possible breakdown. Will Ethereum rebound and surpass the $2,700 mark? Let’s examine the situation.

Ethereum Price Dips Below $2,700

Analyzing the daily chart shows Ethereum’s price continuing its trend of lower highs. After failing to breach the $4,000 resistance, Ethereum is now retesting a long-standing support trendline established since September 2024.

The recent recovery attempt was unable to maintain momentum against the 20-day EMA line, leading to a failed attempt to climb above the 38.20% Fibonacci level at $2,784, which has constrained prices since early February.

At present, Ethereum is priced at $2,681, struggling to reclaim the local support trendline and the critical Fibonacci level. Despite bearish candles indicating price rejections, there appears to be bullish support at lower price levels, which may enhance the likelihood of a breakout.

Should Ethereum experience a bullish breakout, it could target the 200-day EMA near the $3,000 mark. The daily RSI, showing signs of a bullish reversal from oversold conditions, could support this upward trend. However, the downward trend in dynamic average lines poses significant risks.

The recent death cross between the 50-day and 200-day EMA lines, alongside a potential crossover between the 100-day and 200-day EMA lines, indicates a looming risk of price declines. If the support trendline fails, Ethereum may drop to test the $2,224 support level.

Weak Whale Confidence

The prospect of a breakdown is further underscored by the weak confidence among Ethereum whales. Recently, a whale deposited 5,000 ETH worth $13.57 million onto Binance, marking a return after nearly three years. Another whale deposited 8,000 ETH valued at $21.65 million.

Additionally, a different whale appears to have lost confidence in DeFi tokens, depositing 2,390 ETH valued at $6.7 million while also offloading Aave and Compound tokens worth $2.19 million and $132,000, respectively. As whale sentiment declines, the likelihood of continued downturn for Ethereum increases.