Ethereum Slips, More Misery for Bulls as ETH Might Retest $2,600

Ethereum, more like Bitcoin, is also slipping. In the past 24 hours, the coin is down 5%, but losses in the previous trading week are more pronounced. The coin is down 22% and continues to be under pressure when writing.

Despite the recent downturn, the Ethereum community remains bullish. Following Dencun, ETH supporters are still optimistic about potential price gains.

However, the coin is currently down 5% from the previous day and trading below crucial support levels. The selling pressure is expected to persist in the immediate term if bulls fail to reverse recent losses.

So far, ETH’s market cap is down 5% to $382 billion. At the same time, and as expected, trading volume is up 32%, reflecting shifting sentiment favoring sellers.

In the short term, the following Ethereum news events will likely shape prices:

• The Ethereum perpetual contract funding rate is falling as prices trend lower. According to CoinGlass, this rate is approaching zero. This shift shows that buying momentum is decreasing as leverage traders take profit or are liquidated.
• In a filing with the United States Securities and Exchange Commission (SEC), BlackRock said it is launching a tokenized digital asset fund on Ethereum. This endorsement is a major boost for the legacy blockchain, which is facing stiff competition from Solana and other alternatives.

Ethereum Price Analysis

ETH/USD is under significant selling pressure, looking at the formation in the daily chart.

Even though buyers are in control, bulls risk losing control considering the upswing of late February and early March.

The retracement is deep and is at the 50% Fibonacci retracement from the late January to mid-March range. Ideal support is at the 78.6% level at around $2,600.

Since ETH is in a bear breakout formation, any pull higher below $3,400 might offer entries for sellers targeting $3,000 and $2,600.

A sharp breakout above $3,700 cancels out this bearish forecast.