Ethereum Rebound Hopes a Luxury as Brutal Selloff Begins if Final Support Breaks

▲ Ethereum (ETH)

Ethereum (ETH) has fallen below the psychological resistance level of $2,000, signaling a downward trend and increasing the risk of further sharp declines following the breakdown of key technical support levels.

According to crypto media outlet NewsBTC on February 16 (local time), Ethereum failed to break above $2,050 and subsequently reversed into a downtrend, surrendering the $2,000 support level. ETH is currently trading below its 100-hour simple moving average and has also fallen beneath a bullish trend line that had formed at $2,035 on the hourly chart. Analysts warn that if the price fails to quickly reclaim the $2,000 range, growing market pessimism could trigger a new wave of declines.

This latest drop in Ethereum mirrors Bitcoin (BTC)’s weakness, with ETH breaking below the $2,040 and $2,020 levels in succession. The price has now fallen beneath the 50% Fibonacci retracement level measured from the swing low of $1,895 to the high of $2,106, indicating strong pressure from bears. Buyers are currently struggling to defend the price above $1,920, but short-term buying momentum remains insufficient.

Technical indicators are reinforcing the case for further downside. The Moving Average Convergence Divergence (MACD) is gaining momentum in bearish territory, while the Relative Strength Index (RSI) has dropped below the 50 level, signaling a seller-dominated market. If Ethereum fails to overcome the $2,000 resistance level, it could decline toward $1,945 and potentially to the $1,930 zone, which marks the 83.2% Fibonacci retracement level.

If the market fails to hold the $1,930 support, Ethereum risks retreating past $1,880 toward the $1,820 zone. In a worst-case scenario, $1,780 may serve as a major support level, which could deliver a significant psychological blow to investors. Conversely, if Ethereum reclaims $2,000 and secures a stable close above $2,025, a short-term rebound rally targeting $2,045 could be anticipated.

Within the Ethereum ecosystem, attention is also focused on changes in the derivatives market and trends in open interest. Following a large-scale liquidation event, the volatility arising from the deleveraging process is posing a threat to short-term traders. Investors are closely watching whether Ethereum can break through the $2,120 to $2,150 resistance zone as they await a fundamental recovery in market buying sentiment to signal the resumption of a bull market.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.