Ethereum Steps Below $2,400: Will the Coin Fall Below $2,000?

Ethereum - the cryptocurrency behind Bitcoin - is going through a period of intense volatility as prices drop sharply and selling pressure increases. After recording a more than 10% decline last night, the ETH token continues to fall with an internal decline of about 5.04% in the current trading session. This trend raises many questions about the ability to maintain important price levels, especially the $2,000 threshold. Analysis of Charts and Channel Reduction Models The daily price chart of Ethereum shows a clear downtrend channel. From the impressive high of $4,000, the ETH price has dropped by over 40%, indicating strong selling pressure and the possibility of not finding strong support. Current Price Level: ETH is trading around $2,380, while the recent rejection level is around $2,319. Moving Averages: The EMA 100 and EMA 200 are approaching a negative crossover, accompanied by two consecutive bearish candles, increasing the likelihood of a reversal towards the downside. These signals, along with the imbalance in supply and demand, indicate that if the price cannot sustain above the support line of the downtrend channel, selling pressure may continue to push the price lower. Technical Indicators and Price Forecast Technical indicators such as MACD and signal line are showing signs of potential trend reversal. However, for a breakthrough, Ethereum needs to successfully break below the lower boundary of the downtrend channel. Main Support Level: According to Fibonacci levels, the support level near $2,224 is considered significant. Worst Case Scenario: If ETH closes below $2,224, the support zone around $2,000 may be breached, paving the way for a deeper decline that could reach the $1,740 Fibonacci forecast. Positive Scenario: Conversely, if there are signs of recovery and buying momentum resumes, the price may test the 78.6% Fibonacci level around $2,600, opening up the opportunity for a positive reversal. Money Flow and Influence from ETF Funds Not only technical analysis, the money flow from ETF funds related to Ethereum also shows negative signs. On February 24, US spot ETH ETF funds recorded a net outflow of $78.09 million. Prominent Funds: BlackRock suffered a loss of about $48.21 million. Grayscale also witnessed a loss of about $15.45 million. Funds like ARK and 21Shares are in the process of updating data, while Bitwise and Grayscale both show a negative trend. This cash flow is adding more selling pressure, contributing to the current downward trend of Ethereum. Conclusion The Ethereum market is currently facing many uncertain factors. The combination of a descending channel pattern on the chart, technical indicators showing a negative trend, and money flow from ETF funds all raise the question of whether ETH can maintain the support level around $2,000. If the price breaks $2,224: The risk of landing below $2,000 and even further down to $1,740 is very concerning. If the price rebounds: Testing the $2,600 level will open up a positive reversal opportunity for this currency. Investors should closely monitor important support levels and carefully consider risks in the current volatile market environment.