Ethereum Struggles Below Key Trendline and 50-Day EMA Support

Ethereum (ETH) is facing a tough time after slipping below its key trendline and losing support from its 50-day EMA, currently near $1,850. The price has dropped to around $1,870, down from highs above $2,000 just days ago.

The break below the rising channel on the daily chart and under the 50-day EMA typically signals a shift in short-term momentum. However, the Relative Strength Index (RSI) is hovering near neutral at 51, suggesting there may still be room for the price to fall before buyers step back in.

A widely shared chart from Ali Charts shows that the TD Sequential indicator flashed a buy signal near $1,500 in July, which led to a rally of over 31%. Now, with ETH trading closer to $2,000, the same indicator has flipped to a sell signal, suggesting momentum traders may start locking in gains.

Despite the price dip, large holders seem unfazed. Tom Lee's Bitmine reportedly picked up another 10,464 ETH worth close to $19.48 million from a wallet linked to FalconX, while another large wallet added 7,919.5 ETH worth about $14.89 million in a single day.

The derivatives data also shows bullish positioning, with open interest on Ethereum futures rising by 1.80% and long-to-short ratios on Binance and OKX above 2.0. Liquidation data backs this up too, suggesting the recent dip mostly flushed out over-leveraged bulls rather than sparking a broader bearish shift.

Ethereum sits at a crossroads, with near-term weakness suggested by the channel breakdown and lost EMA support contrasting with bullish derivatives positioning. A lot may come down to whether ETH can climb back above $1,930 in the next few sessions.