Ethereum Dips Below $2,500 Amid Bearish Pressure—Will It Recover?

• Ethereum (ETH) price dropped below $2,500, recording an 11% drop over the past 24 hours.
• ETH must hold $2,600 to prevent further downside.
• Long-term accumulation trends remain bullish.

Ethereum (ETH) has slipped below the $2,500 mark, resulting in an 11.54% decline in the past 24 hours. The dip in the ETH market occurs amidst global crypto market weakness and the recent Bybit hack, resulting in the theft of approximately $1.4 billion worth of Ethereum. In an act to salvage the situation, Bybit CEO Ben Zhou confirmed that the exchange firm has closed the deficit and published a PoR to verify that the Ethereum assets remain fully backed, securing 447,000 Ether through emergency funding.

Although short-term indicators suggest a bearish outlook, some analysts maintain a strong long-term bullish stance, strongly confident about Ethereum’s historical price patterns and trends. 

Key Technical Levels: Can ETH Hold Above $2,600?

Ethereum price is currently struggling around the $2,500 level, with analysts identifying $2,450 as a crucial threshold for the asset’s short-term trajectory. A break below this level will nullify hope for its breakthrough and rather push it toward the next key support zone at $2,120. Also, the technical indicators point to that ETH may remain below the $2,750 level and 100-hour moving average. 

However, a bearish pattern has formed with resistance at $2,600, an important level for ETH. The MACD for ETH/USD still shows a bearish line as Ethereum’s RSI sits far below the 50 level, which indicates a lack of buying pressure.

If Ethereum manages to reclaim $2,650, a relief rally toward $2,850 could materialize, but strong resistance remains in place at these higher levels.

Long-Term Fundamentals: Accumulation Trends and Market Dynamics

Despite the current market downturn, Ethereum’s long-term outlook remains positive. Analyst “Doctor Profit” pointed out that ETH is only 18% above its 200-week EMA, a historically reliable indicator that has provided strong support in previous market cycles.

Ethereum 200-week EMA Analysis. Source: (X) 

This suggests that Ethereum’s risk-reward ratio is still healthy and attractive with a potential uptrend. On-chain data from Glassnode also reveals that investors have been actively accumulating ETH at key support levels.

Approximately 786,000 ETH has been bought around the $2,632 zone, another indication of strong buying interest. Also,  a more substantial accumulation happened at $3,150, where 1.22 million ETH has been acquired. These trends suggest that long-term holders remain confident in Ethereum’s future, willing to average down instead of existing their entire position. 

Ethereum vs. Bitcoin: Can ETH Outperform?

Recently, Ethereum has faced downward pressure and is undervalued. Still, its relative performance against Bitcoin remains a point of interest. According to data from CryptoQuant, while Ethereum’s taker buy-sell ratio increases, Bitcoin’s is showing signs of decline.

Historically, such shifts have paved the way for Ethereum to gain bullish momentum against BTC.

However, Ethereum still faces structural challenges, including lower staking yields compared to Solana (SOL) and ongoing regulatory uncertainty surrounding spot Ether ETFs. 

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