Ethereum price rebounded sharply above $2,000 psychological support on Monday as market risk-on sentiment improved and Bitmine made another large purchase of over $50,000. $ETH.
summary
- Ethereum price has regained $2,000, supported by institutional investors’ bullish buying and Bitcoin’s temporary recovery.
- Confirmed weakness continues to weigh on investors’ outlook.
According to data from crypto.news, Ethereum ($ETH) rose 7.5% to an intraday high of $2,072 on Monday, before stabilizing above the $2,000 psychological support zone. At its current price of $2,008, the major altcoin is nearly 8% above its decline after US President Donald Trump announced a major combat operation against Iran alongside Israel.
Despite recouping some of the losses from past sessions, the altcoin has so far failed to sustain its upward trend.
Ethereum price rebounded yesterday after the world’s largest Ethereum treasury company Bitmine revealed it had purchased an additional 50,928 Ethereum. $ETH Its value at the time was approximately $103 million.
Recent purchases have increased your total amount $ETH Number of possessions: 4,473,587 $ETHnow worth nearly $9 billion. Institutional buying tends to support retail sentiment.
You may also like: Why Bitcoin Price Rise Risks Falling into a Bullish Trap as Fibonacci Resistance Holds
This recovery was due in part to Bitcoin’s rally after the U.S. market opened on March 2, with the leading cryptocurrency rising from an intraday low of around $65,000 to more than $69,800 in a matter of hours. Higher-than-expected U.S. manufacturing data temporarily restored risk sentiment.
Meanwhile, short traders were caught off guard. $ETH Prices have recovered. According to CoinGlass data, more than $85 million was liquidated from leveraged markets in the past 24 hours, with short sellers accounting for $57 million of that amount.
However, Ethereum’s momentum appears to be cooling, especially after Bitcoin failed in its third attempt to break above the $70,000 resistance level this month. Meanwhile, capital is returning to gold as a ‘safe haven’ as tensions in the Middle East spook investors.
Ethereum’s seasonal outlook has also been bleak so far, with the altcoin having been in the red for six consecutive months since September 2025, marking its longest losing streak to date.
The median March return has historically been close to 6%, but $ETHthe current uncertainty in market direction provides little clarity as to whether the asset will eventually be able to break out of the downward cycle.
On the weekly chart, Ethereum price confirms a huge head-and-shoulders pattern, which is a bearish reversal signal. Traders are taking this as a sign that the current uptrend has reached its limit and a significant price drop could be on the horizon.
Ethereum price confirms head-and-shoulders pattern on weekly chart — March 3 | Source: crypto.news
The supertrend indicator also flashed red as the price of Ethereum fell below the threshold. If this indicator shows a red flag, it means that the selling pressure significantly exceeds the buying pressure.
At the same time, the Chaikin Money Flow Index shows a negative value of -0.15, indicating continued capital outflow from assets.
For now, traders will be looking to protect the $1,800 support zone, which has served as a psychological downside for the past month. A decline below this key structural pivot point could trigger further downside, especially given the stressed macro environment.
Conversely, a breakout of the $2,200 mark could invalidate the bearish prediction. This level is located at the 23.6% Fibonacci retracement, so it is an important technical barrier and a key point for a trend reversal to take hold.
read more: Housing reform bill with CBDC ban passes US Senate
Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
