Ethereum is following Bitcoin’s bearish trend, with a sharp 10% drop overnight and an additional 5% intraday decline. As market volatility intensifies, ETH struggles to hold key support levels. Now, traders are questioning: Will Ethereum fall below $2,000?
Ethereum Faces Potential Falling Channel Breakdown
Ethereum’s daily chart shows a falling channel pattern, with prices dropping over 40% from the $4,000 high. ETH currently trades at $2,380, rebounding slightly from its 24-hour low of $2,319.
However, despite this minor recovery, market sentiment remains bearish. Two consecutive red candles signal further downside, while the 100-day and 200-day EMAs are on the verge of a negative crossover. Additionally, the MACD indicator suggests a potential trend reversal.
If Ethereum fails to hold above the lower boundary of the falling channel, selling pressure could accelerate the decline.
Ethereum Price Targets – Where Is It Headed Next?
According to Fibonacci retracement levels, the first key support sits at $2,224. If ETH closes below this level, it could test the critical $2,000 zone.
A deeper correction could send ETH to $1,740 if the downtrend continues. On the upside, a bullish reversal could push Ethereum toward the $2,600 resistance level.
Ethereum ETFs See $78 Million Net Outflow
Adding to the bearish sentiment, Ethereum spot ETFs recorded a $78.09 million net outflow on February 24. Four out of nine ETFs reported negative net flows, signaling weak investor confidence.
- BlackRock led the outflows with $48.21 million.
- Grayscale followed, selling $15.45 million worth of ETH.
- Bitwise and Grayscale remained bearish.
- ARK and 21Shares have yet to report net flow data.
Meanwhile, four other ETFs saw no significant inflows or outflows, resulting in the overall decline.
Can Ethereum Recover, or Is More Downside Ahead?
With technical indicators signaling weakness and ETF outflows increasing, Ethereum’s outlook remains uncertain. If selling pressure continues, ETH could drop below $2,000 in the coming days.
However, if Ethereum bounces back from key support levels, a recovery toward $2,600 could be on the horizon.
