Ethereum remains under significant pressure as the broader crypto market continues to correct. With the price losing key support levels and sentiment becoming increasingly cautious, all eyes are on whether ETH can stabilize above the key zones or another decline is in store.
technical analysis
Written by Shayan
daily chart
On the daily time frame, ETH has fallen below both the 100-day and 200-day moving averages and is currently hovering around $2,800. This breakdown occurred after several days of consolidation around the $3,000 level, which served as weak support before the market finally cracked.
The RSI is also sitting deep near the oversold region around 30, reflecting strong bearish momentum. If the asset fails to regain the $3,000-$3,100 zone soon, the next important support lies around $2,500, the previous demand zone that could serve as a potential pullback area.
4 hour chart
Zooming in on the 4-hour chart, ETH has formed a bearish ascending wedge pattern during the recent bailout, which is typically a continuation setup in a downtrend. Price is currently on the verge of breaking below the wedge, indicating that sellers are still in control.
If this breakdown is confirmed, it is very likely that the $2,500 support area will be tested again. The RSI for this time frame is also trending down and fails to break above 50, indicating that momentum is still in favor of sellers.
As a result, everything could end up at the $2,500 level, whether the price holds or breaks down to pave the way for a deeper retracement.
On-chain analysis
Exchange Netflow
On Sunday, November 23rd, Ethereum experienced a spike in exchange outflows, resulting in the largest negative net flow in recent years. This means that a significant amount of ETH has been withdrawn from centralized exchanges.
There are several possible interpretations. Whales and financial institutions may be moving funds into cold wallets or holding them for long periods of time in hopes of accumulating opportunities during price declines. Alternatively, it may indicate that users are avoiding storage risks due to fear of further decline.
In any case, this type of action typically reduces immediate selling pressure on exchanges, but does not guarantee a bottom price unless accompanied by bullish price action or strong inflows to DeFi and staking platforms. For now, this netflow data shows signs of cautious accumulation, but not full-blown reversal optimism.
