Ethereum at Crossroads: Break Above $2,100 or Drop to $1,700

▲ Ethereum (ETH)

Ethereum (ETH) is battling to defend the $1,900 level amid strong downward pressure, with whether it can break above the $2,100 resistance expected to become a critical watershed determining a massive rebound or further steep declines.

According to crypto-focused outlet The Crypto Basic on February 16 (local time), Ethereum fell sharply by 6.2% over the past 24 hours, testing key support levels. Although it briefly attempted a rebound by climbing above $2,090 intraday, buying momentum weakened after being blocked by a major resistance line. Daily trading volume surged 11.25% to $3.41 billion, suggesting that significant panic selling contributed to the price drop.

Technical indicators clearly show that Ethereum is facing a very strong bearish market. The 50-day exponential moving average (EMA), reflecting short-term momentum, stands at $2,579.64, while the 100-day EMA, indicating the longer-term trend, is positioned at $2,887.04—both far above the current price. This suggests Ethereum remains trapped in a medium- to long-term downtrend channel. Meanwhile, the average directional index (ADX) has surged to 55.43, signaling that the current downward trend is firmly entrenched.

Analyst Ted, cited by reporter Mark Brennan, said that if Ethereum decisively breaks through the critical psychological and technical barrier at $2,100, it could stage a strong relief rally toward the $2,350 to $2,400 range. Conversely, if the price is rejected again at this level by strong resistance, Ted warned that it could swiftly collapse below the $1,900 support and plunge vertically toward $1,800 or even $1,700.

Ethereum’s 40.57% plunge over the past 30 days and 51.92% decline over the past 180 days have instilled extreme fear among investors. However, the fact that it still maintains a 69.06% long-term return compared to its all-time high offers a faint glimmer of hope for long-term holders. For the current downward momentum to ease, a breakout above the descending trendline accompanied by strong volume is needed. In particular, whether whale investors build a defensive wall around the $1,900 level will be a key variable in determining short-term direction.

Ethereum now stands at a precarious crossroads between a healthy correction and a devastating crash, with the market eagerly awaiting technical reversal signals. Global investors are closely watching whether it can break down the seemingly impregnable $2,100 barrier and stably reclaim the $2,000 range. Given the strength of the current downtrend, confirmation of price stabilization at major support levels is needed rather than premature dip-buying.

Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.