Ethereum (ETH) Slides Under $2,600 – Is a Rebound Coming?
While sentiment in the Ethereum (ETH) market remains in the dumps as the world’s second largest crypto by market cap slides back under $2,600, the bears could be in for a surprise in the months ahead.
Short-term chart analysis suggests a deeper pullback in the days ahead could ensue. After breaking below its downtrend from the mid-December highs last week, Ethereum confirmed rejected a retest of this trend line on Tuesday.
That suggests elevated risks of a deeper drop back towards $2,000 in the weeks ahead.
If Wednesday’s US CPI data comes in hotter-than-expected, this could be the next major catalyst for downside as Fed rate cut bets are wound down.
And Ethereum doesn’t just face the possibility of further declines in its USD price, but also against Bitcoin (BTC).
Since the hugely successful US Bitcoin ETF launch in 2024, ETH/BTC has slumped from around 0.055 to current levels around 0.027.
And if the crypto market is set to face headwinds in the coming weeks, BTC dominance is only set to rise as traders shift towards the relative safety of the world’s largest and oldest crypto.
However, while short-term sell pressure could remain elevated, say traders would do well to continue stacking ETH while they can at the current lower prices. Here’s why we ETH’s streak of consistent underperformance could be set to end soon.
Ethereum (ETH) Underperformance Won’t Last – Here’s Why
Analysts at 10x Research posited on Monday that Ethereum might be approaching oversold levels and could present a good short-term risk reward bet.
Is #Ethereum Oversold?
With multiple catalysts on the horizon, is now the time to buy?
👇1-12) Ethereum’s Relative Strength Index (RSI) has dropped to 36%, a level where past corrections have slowed, even as Bitcoin remains in a bull market. Unlike Bitcoin’s parabolic rallies… pic.twitter.com/vUErrViU6F
— 10x Research (@10x_Research) February 11, 2025
Meanwhile, analysts at Citi just published a bullish research note on the coin, noting how its poor price performance this year stands at odds with growing on-chain activity (including TVL), strong ETF inflows this year, and growing search interest.
Is #Ethereum Oversold?
With multiple catalysts on the horizon, is now the time to buy?
👇1-12) Ethereum’s Relative Strength Index (RSI) has dropped to 36%, a level where past corrections have slowed, even as Bitcoin remains in a bull market. Unlike Bitcoin’s parabolic rallies… pic.twitter.com/vUErrViU6F
— 10x Research (@10x_Research) February 11, 2025
And Citi also noted what could be one of Ethereum’s most important bullish narratives right now – that the Trump family (via their World Liberty Financial DeFi project) have been stacking ETH and now hold over $200 million.
The arrival of the Trump administration in the White House has already kickstarted a new golden age for crypto in the USA, with bolstering the Ethereum ecosystem likely to be at the heart of plans given the Trump families investments in the coin.
I recent increased in ETH whale purchases, noted by X analyst Ted Pillows, could reflect a view amongst “smart money” investors that, as noted by 10x Research, risk reward at the current ETH price is very good.
Ethereum whales are accumulating $ETH.
Why? They want to stay poor and lose money.
Epic Ethereum revenge rally is loading ⌛️… pic.twitter.com/dGQBqK2yxy
— Ted (@TedPillows) February 11, 2025
Its also worth noting that ETH recently printed a golden cross on the weekly chart, which has historically proven to be a great buy signal.
$ETH just printed a Golden Cross on the weekly chart!
Every previous Golden Cross led to massive upside.
The question is not if, but when Ethereum will send. pic.twitter.com/B0m3wOlfnW
— Merlijn The Trader (@MerlijnTrader) February 11, 2025
Crypto Rover, meanwhile, notes that ETH could be on the cusp of breaking out of a long-term pennant pattern that could see it 2-3x from current price levels.
ETHEREUM LOOKS READY TO BREAK OUT BIG!🚀 pic.twitter.com/1Pio14bgPC
— Crypto Rover (@rovercrc) February 11, 2025
Ethereum Will Have Its Day
Ethereum has been dogged by concerns about competition from up-and-coming rivals like Solana, Sui, and its layer-2 ecosystem of blockchains like Base and Arbitrum.
Thanks to its technical flaws (like relatively high gas prices and slow transactions) fears remain elevated that ETH is going to get left behind – Uniswap, the biggest DEX operating on Ethereum, recently launched its own layer-1 protocol, an example of these concerns.
That, plus an underwhelming ETH launch in 2024, have resulted in lackluster price action even as BTC surged to new record highs above $100,000.
And that lackluster price action is itself contributing to the FUD in a vicious cycle of price underperformance, FUD about price underperformance and then, as a result, more price underperformance.
However, Ethereum still has so much going for it that it would be foolish to count the blockchain out.
As noted, its a Trump family-owned coin, suggesting there will be efforts to bolster its ecosystem specifically under the Trump administration.
So let me get this straight
– Blackrock is planning to build on Ethereum and is putting hundreds of Millions into $ETH. Fink wants to tokenize the entire financial system.
– Trump's World Liberty Fi is also building on Ethereum, focusing heavily on DeFi, and has also bought up… pic.twitter.com/HnkSOYjS50
— The Gr0k Father (@TheGrokFather1) February 10, 2025
Its also BlackRock’s chosen coin – they have specifically said they want to focus on promoting their BTC and ETH ETFs rather than launching more for more coins.
That reflects the fact that Ethereum is far and away the most secure and trusted smart-contract-enabled blockchain in the space, and remains the dominant leader in DeFi.
Per DeFi Llama, Ethereum’s TVL is currently around $56.4 billion, a 53% share of overall TVL in the space.
Remember, unlike retail users, massive players like BlackRock aren’t so concerned about cheap and fast transactions – they would rather know the blockchain they are moving massive amounts of assets around on are highly secure and decentralized, which (outside of Bitcoin) arguably only Ethereum is.
Ethereum might be in the dumps right now. But with so much going for it behind the scenes, its day will surely come soon.
Source: cryptonews.com
