Ethereum shows 2K signs as bulls suffer exhaustion

Ethereum retested its weekly support on Monday and increased by 4.5% to $2.45K by Thursday, although the downside risk is still significant. The super altcoin has lost over a third of its value this month partly due to a moderated appetite for risk.

There is still more pressure to sell because of the general concern because of such a downturn. In light of this, the crucial query is the potential length of this negative trend.

This has set off a series of protracted liquidations that have terrified the market. However, the price has now settled within the crucial $2.1K support area, which catalyzed the previous bullish surge that sent the price to the $4K annual high.

Since Ethereum’s price couldn’t rise above $3.5K, bulls have been under intense pressure. The market sell orders have increased sharply because of the subsequent rejection of the $3K barrier.

The Taker Buy/Sell Ratio has dropped to its lowest level since 2021 because of this spike in selling activity, reflecting a significant pessimistic attitude among futures market players.

This pessimistic attitude implies that leveraged traders expect Ethereum’s price to drop further. A lack of faith in the market’s ability to support higher prices is indicated by the constant execution of sell orders, which could result in more downward pressure.

In the immediate term, given the severity of the recent decline, a phase of sideways consolidation around the $2.1K support level is probably in order, followed by small positive corrections. This would prevent any more big fluctuations in the market and allow it to stabilize and “catch its breath.”

Lookonchain data revealed Ethereum Spot ETFs received inflows of 44,447 ETH, worth $110.1 million on Wednesday. Santiment’s data, on the other hand, indicates that there may be an impending rally due to increasing activity in inactive wallets and recent capitulation events.

According to Lookonchain statistics, there were net inflows into nine spot Ethereum ETFs on Wednesday totaling 44,447 ETH, or $110.1 million. This makes two days in a row of net inflows this week.

With their combined Ethereum reserves of $7.04 billion, this pattern highlights how critical these ETFs’ net flow data are to understand investor mood and market dynamics.

Ethereum displays significant selling pressure on the 4-hour chart after breaching below the lower border of the $2.8K wedge. The price broke through several support levels because of this breakdown, intensifying the bearish trend.
At the $2.1K level, ETH has now found a strong support area. The market frequently goes into a corrective phase to consolidate and possibly retrace after such an aggressive bearish surge.