Ethereum’s price remains trapped between $2,100 and $2,800, with no clear direction in sight. Bulls attempt to push higher, but sellers continue to defend key resistance levels. Every attempt to break above $2,800 has failed, leading to increased bearish pressure. Meanwhile, traders closely monitor crucial support zones, anticipating a decisive move that could result in either a breakout or a steep decline. The big question remains: Will Ethereum rally, or is another sell-off looming?
$ETH Has failed to break above that important $2.8K area which has been a big resistance the past few weeks.
— Daan Crypto Trades (@DaanCrypto) February 25, 2025
After Bybit announced they filled the hole after the hack, price started selling off.
This cycle, both $BTC & $ETH have reacted well around the .786 levels so I'm… pic.twitter.com/uZNGoiuQAT
Retail Traders Bet Against Ethereum as Short Positions Rise
After a 10% drop from $2,850, Ethereum briefly recovered to $2,775. However, bearish sentiment remains strong, with retail traders increasing short positions while reducing long exposure. The Short Ratio has surged past 30%, while the Long Ratio has declined below 75%, indicating growing expectations of a further price drop.
Rising Open Interest suggests that new short positions are being established rather than long liquidations. If Ethereum falls below $2,550, it could trigger a further decline toward $2,450. Deeper support lies at $2,320 and $2,250. At the same time, Binance has been moving large amounts of Ethereum, with transfers ranging from 1,003 ETH to 1,520 ETH, worth millions of dollars. These transactions raise speculation about potential liquidity shifts or impending selling pressure.
Key Price Levels Could Determine Ethereum’s Next Move
Ethereum’s price action is creating uncertainty as traders assess market liquidity and resistance levels. Large players often act ahead of major price movements, making the current situation even more unpredictable. Technical indicators suggest mixed signals, with the hourly MACD remaining bearish and the RSI below 50, signaling market weakness.
Despite the bearish outlook, past market cycles have shown strong rebounds around the 0.786 Fibonacci retracement level, making it a crucial area to watch. If Ethereum breaks above $2,825, a short squeeze could force sellers to cover positions, potentially pushing prices toward $3,000. Conversely, continued selling pressure could test the critical $2,100 support level.
Also Read: Ethereum Price Plunges to $2,300 – Can ETH Bounce Back to $8,000?
Market sentiment remains fragile, and volatility is expected. Traders must stay vigilant as Ethereum approaches a pivotal moment that could determine its next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
