Technical Breakdown
Ethereum’s price action turned bearish this week as ETH traded beneath its 50-day and 200-day simple moving averages (SMAs). Following a failed attempt to pierce the $3,300 resistance level, the coin slid lower, eventually dipping below its 50-day SMA at roughly $3,000. The break below the shorter-term average has intensified selling momentum, pushing Ethereum toward the $2,800 zone.
Key Support Levels
The $2,800 mark has emerged as a critical line in the sand. Historically, this level has acted as both support and resistance, making it a focal point for traders’ buy orders. If this floor holds, it may pave the way for a rebound toward the 50-day SMA near $3,100. However, failure to defend $2,800 could trigger further declines, potentially testing the $2,600 trend line established earlier this year.
Market Sentiment and Outlook
Market participants have grown cautious, with on-chain metrics signaling waning confidence. The Relative Strength Index (RSI) on the daily chart has slipped into oversold territory, indicating that ETH might be primed for a short-lived bounce. Broader market correlations, especially with Bitcoin, remain strong, suggesting that a decisive move in BTC could influence Ethereum’s next leg. Analysts are divided, with some expecting a swift recovery if $2,800 holds, while others warn of deeper retracements in a risk-off environment.