Ethereum (ETH) is currently trading near $2,500 after a sharp drop from the $2,700 resistance level. The cryptocurrency remains above its daily 100-day and 200-day moving averages, but weakening momentum and a recent uptick in the exchange supply ratio suggest caution before assuming a broader recovery.
The daily chart shows a strong recovery from June’s lows near $1,500, followed by a rally into the $2,400 region. ETH then climbed toward $2,700, where it faced resistance before sellers took control in early October. The latest rejection pushed ETH back toward $2,400, a key support level. Buyers have responded, but the rebound remains modest.
If $2,400 holds, ETH could attempt a recovery toward $2,700. A sustained breakout above this level would improve the near-term outlook and potentially reopen the path toward $3,000. However, a decisive close below $2,400 would weaken the recovery structure, with the next support area around $2,000-$2,200, where the 100-day and 200-day moving averages have recently crossed bullishly.
The Relative Strength Index (RSI) has dropped to around 40, indicating weakening momentum. The 4-hour chart shows a modest recovery toward $2,500 after a sharp sell-off, but momentum remains weak. On-chain analysis reveals a recent rebound in the exchange supply ratio, suggesting that more ETH may be returning to exchanges, potentially increasing selling pressure.