Ethereum’s recent attempts to reclaim the $2,000 level have been met with repeated rejection, signaling that the bulls are running out of steam. After multiple failed breakouts, the cryptocurrency is now showing clear signs of exhaustion beneath its 100-day moving average, raising the risk of a deeper pullback if critical support levels give way. Traders are closely watching the price action as the market’s short-term momentum weakens.

Daily Chart: Double Rejection at $2K

On the daily timeframe, Ethereum has been struggling to sustain upward momentum, with the $2,000 psychological and technical resistance zone proving to be a formidable barrier. The price has been rejected twice from this area, each time with lower highs, indicating that sellers are aggressively defending the level.

The 100-day moving average, which sits just below the $2K mark, has acted as a dynamic ceiling, preventing any meaningful recovery. The latest rejection from this zone has further dampened investor sentiment, as the failure to break through suggests that the broader trend remains bearish.

Key Support Levels Under Threat

If the current pullback extends, Ethereum’s first line of defense lies at the $1,800–$1,850 range. This zone has historically provided support, but if it fails to hold, the next significant support is around $1,700. A break below these levels could trigger a cascade of selling, potentially leading to a retest of the yearly lows.

On the upside, a recovery above the 100-day moving average and the $2,000 mark would be necessary to invalidate the bearish outlook. However, with momentum indicators turning south, the path of least resistance appears to be downward.

Momentum Indicators Point to Weakness

Technical indicators on the daily chart are reflecting the loss of bullish momentum. The Relative Strength Index (RSI) is trending lower, moving away from overbought territory, while the Moving Average Convergence Divergence (MACD) is showing a bearish crossover. These signals suggest that sellers are gaining control.

Volume analysis also paints a concerning picture, as recent upswings have been accompanied by declining volume, indicating a lack of conviction among buyers. Conversely, the rejection candles have seen higher volume, reinforcing the bearish narrative.

What to Watch Next

For traders, the key levels to monitor are the $1,800 support and the $2,000 resistance. A daily close below $1,800 would confirm a bearish continuation, while a decisive break above $2,000 could shift the sentiment back to bullish. Until then, the market remains in a precarious state.

Investors should also keep an eye on broader market conditions, as Bitcoin’s price action often influences Ethereum’s direction. Any sharp move in the leading cryptocurrency could have a cascading effect on ETH.

Conclusion

Ethereum’s repeated failure at the $2,000 level and the subsequent rejection from the 100-day moving average are clear warning signs. With short-term momentum fading and key support levels under threat, the probability of a broader pullback is increasing. Traders should brace for potential volatility and manage their risk accordingly.

“The double rejection at $2K is a classic bearish signal, and unless buyers step up decisively, ETH could be heading for a retest of lower supports.”

As always, staying informed and adaptable is crucial in the fast-moving crypto market. Keep a close watch on the support and resistance levels outlined above to navigate the potential turbulence ahead.