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Zameer Attar
Zameer Attar
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- Feb 18, 2025 12:20 UTC
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Why Ethereum is Down Today: Will $2,400 Hold in the Next Drop?
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ETH $ 1,878.89 (-1.86%) 
Ethereum price retreated after failing to break the $2,750 resistance, raising concerns of a potential drop to $2,400.
Despite the bearish outlook, positive signs include increased inflows into U.S. spot Ethereum ETFs and a record low supply of ETH on exchanges.
While short-term price remains uncertain, long-term indicators and improving market sentiment suggest a potential rebound for Ethereum.
Ethereum is under pressure as bearish forces take control again. With Bitcoin dropping below $96,000, ETH failed to hold its recovery, reversing from the $2,750 resistance. Weak technical signals, rising gas fees, and record-high ETH supply are fueling concerns of a potential drop to $2,400. While the outlook remains bearish under trend line resistance, there are still signs of a possible rebound.
Let’s take a closer look.
Ethereum Fails to Break $2,750
Ethereum’s recent rally lost momentum after failing to clear the key $2,750 resistance. The rejection led to a 2.9% pullback, bringing ETH down to $2,663. With the market still volatile, Ethereum’s price continues to form lower highs, signaling ongoing bearish pressure.
For now, ETH is holding support at $2,600. But if this level breaks, losses could accelerate, putting the $2,400 support in focus. The bearish outlook is further reinforced by a recent death cross between the 50-day and 200-day EMAs, along with a declining 100-day EMA.
- Also Read :
- Capital Inflows into Bitcoin and Ethereum Fall, But ETH Price Remains Strong—What’s Next for BTC Price?
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Can Institutional Demand Save Ethereum?
Despite its underperformance, Ethereum still has some bullish catalysts. U.S. spot Ethereum ETFs have recorded an inflow of 145k ETH in February, a significant jump compared to January. Additionally, Santiment reports that ETH’s supply on exchanges has dropped to an all-time low, suggesting strong accumulation.
If Ethereum manages to hold above $2,600 and sentiment shifts, a rebound toward $3,000 remains possible. However, if bears continue to dominate, ETH could soon test the $2,400 support zone.
Signs of Rebound?
According to Santiment’s X post, Ethereum is showing signs of recovery, climbing to $2,745 and outperforming most altcoins. A key factor behind this trend is the rapid movement of ETH from exchanges to cold wallets, with only 6.38% of its total supply now available for trading—the lowest since its inception. This is generally a positive sign as investors are holding onto their ETH, reducing selling pressure. Plus, market sentiment around Ethereum is improving after a weak 2024, with many anticipating a stronger rebound when broader crypto markets recover.
However, they also note that this is a long-term indicator rather than something that directly impacts short-term price swings.
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FAQs
Yes, significant institutional inflows into U.S. spot Ethereum ETFs could provide support, potentially helping ETH rebound above $2,600 if sentiment shifts.
As the altcoin season begins, the short-term gains make Ethereum a lucrative buying option. However, the long-term promises of this programmable blockchain make it a viable long-term crypto investment.
As per our latest ETH price analysis, the Ethereum could reach a maximum price of $123,678.
Yes 
No 
