With Bitcoin reaching November 2024 levels, Ethereum is also following a bearish path. After a downfall of more than 10% last night, the bearish trend in ETH price continues, with an intraday drop of 5.04%.
As market volatility remains high, Ethereum struggles to find strong support levels. Will this downfall push Ethereum under $2,000?
Falling Channel Breakdown in Sight?
In the daily chart, the ETH price trend reveals a falling channel pattern. Within the pattern, the ETH price has dropped more than 40% from the swing high of $4,000.
Currently, ETH trades at a market value of $2,380, with a lower price rejection from the 24-hour low at $2,319. While the short-term rejection hints at a potential comeback within the channel, the broader market sentiment suggests a potential breakdown.
With two consecutive bearish candles, the 100 and 200-day EMA lines are on the verge of forming a negative crossover. Furthermore, the MACD and signal lines are giving a trend reversal signal.
Hence, the technical figures are signaling a potential falling channel breakdown. If Ethereum fails to sustain above the lower boundary of the falling channel, increased selling pressure could accelerate the decline.
Ethereum Price Targets
As per the Fibonacci levels, the channel breakdown is likely to find support near $2,224. However, closing under this level will put the $2,000 support zone at risk.
The Fibonacci projections expect a steeper correction to $1,740 if the channel breaks down. On the flip side, a positive turnaround will likely test the 78.6% Fibonacci level near the $2,600 mark.
Ethereum ETFs Witness $78.09M Net Outflow
On February 24, the US Ethereum spot ETFs recorded a net outflow of $78.09 million. Out of the nine Ethereum ETFs, four maintained a bearish position.
BlackRock recorded an outflow of $48.21 million, followed by Grayscale dumping $15.45 million. Bitwise and Grayscale mainly maintained a bearish position, while ARK and 21Shares are yet to update their net flows.
The rest of the four ETFs maintained a net zero flow, resulting in the overall outflow.
