Ethereum (ETH-USD) Crashes Below $2,400 – Is a Collapse to $2,000 Next or a Major Rebound Coming?

Ethereum Faces Heavy Selling Pressure – Can ETH-USD Recover or Is a Deeper Drop Ahead?

Ethereum Breaks Below $2,400 as Liquidations Soar and Market Panic Grows

Ethereum (ETH-USD) has fallen sharply in the past 24 hours, breaking below $2,400 and raising concerns over further downside potential. The sell-off intensified after $1.34 billion in crypto liquidations, with Ethereum alone seeing $294 million wiped out, the majority from overleveraged long positions. Traders who were betting on a bullish recovery have been forced to exit, driving prices lower in a cascading effect. The sudden volatility has put Ethereum at risk of falling below $2,200, a key support level that could dictate its next major move.

Trump’s Tariff Threats and Macroeconomic Pressures Weigh on ETH-USD

The ETH-USD decline coincides with heightened macroeconomic uncertainty, particularly stemming from President Trump’s renewed tariff policies. On Feb. 24, Trump confirmed the immediate implementation of sweeping tariffs on Canadian and Mexican imports, ending the temporary suspension that had kept markets hopeful. These measures add 25% tariffs on Mexican and Canadian goods, including a 10% duty on Canadian energy exports, further pressuring risk assets like Ethereum and Bitcoin (BTC-USD).

Historically, markets have responded negatively to tariff escalations, and the crypto market is mirroring the February 3 sell-off, when Trump first threatened to impose these trade restrictions. Investors are moving towards safer assets like gold, which has already surged 12% this year, while riskier assets such as stocks and cryptocurrencies are under pressure. At the same time, Federal Reserve officials have signaled no urgency to cut interest rates, leaving Ethereum in a vulnerable position as investors reassess risk appetite.

Ethereum Faces a Critical Technical Breakdown – Bearish Patterns Confirm Risks

Ethereum’s price structure has taken a decisive bearish turn, entering the breakdown stage of a bear pennant pattern. On Feb. 23, ETH-USD broke below its lower trendline, a move that historically signals further downside, especially when confirmed by rising volume.

Technical indicators suggest that Ethereum could be headed for a 20% drop, with $1,945 as the next major support zone. The 200-day EMA has been breached, a bearish signal that increases the likelihood of extended selling pressure. Traders and analysts are watching $2,200 and $1,945 as key downside targets, with some suggesting that if ETH fails to hold $2,000, a deeper correction to $1,750 could unfold.

Bybit’s Ethereum Accumulation Fails to Prevent Further Declines

Adding to the confusion in the market, crypto exchange Bybit has aggressively accumulated Ethereum, purchasing 36,893 ETH worth $87.50 million in an OTC (over-the-counter) transaction. This follows a three-day spree where Bybit acquired 212,101 ETH valued at $574 million. Normally, such massive institutional purchases would support price stability, but Ethereum has instead dropped over 10% despite this accumulation, indicating that broader selling pressure outweighs buy-side demand.

Some analysts believe that Bybit’s ETH purchases may not have had an immediate impact because they were executed through OTC deals, rather than direct market orders. This means that while the purchases increase Ethereum’s overall supply demand, they did not create significant price momentum due to the absence of on-exchange buying activity.

Traders Increase Bearish Bets as Ethereum Struggles to Hold Support

Data from on-chain analytics firm Coinglass shows that traders are heavily betting against ETH-USD, reinforcing the bearish outlook. In the past 24 hours, over $296 million in short positions have been built at key price levels, with Ethereum’s largest concentration of leveraged positions sitting at $2,355 on the downside and $2,458 on the upside. This reflects an expectation that Ethereum will face resistance if it attempts a recovery, while also confirming that traders are positioning for lower prices.

Adding to the negative sentiment, Ethereum has now formed a ‘death cross’ pattern, where the 50-day moving average has fallen below the 200-day moving average. Historically, this formation signals extended bearish momentum, further increasing the risk of a sustained sell-off in the coming weeks.

Long-Term Outlook: Can Ethereum Still Recover?

Despite the immediate bearish pressure, long-term investors remain optimistic about Ethereum’s future. While short-term risks are mounting, analysts point to Ethereum’s strong fundamentals, institutional adoption, and upcoming developments as reasons for eventual recovery.

Crypto researcher Doctor Profit highlighted that Ethereum is currently trading just 18% above its 200-week EMA, a historically significant level that has acted as a strong support zone in previous cycles. His analysis suggests that Ethereum could still target $8,000-$10,000 in the next bull run, despite short-term turbulence.

Additionally, on-chain data from Glassnode shows that investors have been accumulating Ethereum near $2,632, with over 786,000 ETH purchased at this level. A larger accumulation cluster has also formed at $3,150, where 1.22 million ETH has been bought, suggesting that long-term holders are averaging down, rather than exiting the market.

Another key factor is the declining Ethereum reserves on exchanges, which have fallen to a nine-year low. This supply-side reduction historically supports long-term price appreciation, as lower available liquidity could intensify upward moves when buying demand returns.

Ethereum vs Bitcoin: Which Asset Holds Up Better?

Despite Ethereum’s sharp decline, it has shown relative resilience against Bitcoin. Analyst Crypto Sun-Moon noted that while Bitcoin’s taker buy-sell ratio is falling, Ethereum’s has been increasing, suggesting that ETH is seeing stronger buy-side interest relative to BTC.

However, Ethereum still lags behind Solana (SOL-USD) in staking rewards, with its adjusted staking yield at just 2.4%, compared to Solana’s 4%. This lower yield has discouraged some investors, but analysts believe that if the SEC approves Ethereum staking within spot ETH ETFs, this could become a major bullish catalyst.

Ethereum Must Hold $2,200 or Risk Further Collapse

Ethereum is now at a make-or-break moment, trading at $2,423 as it fights to hold critical support levels. A move above $2,550 would be the first sign of a potential recovery, while failure to reclaim this level could send ETH tumbling toward $2,000 and lower.

For Ethereum to reverse its bearish trend, bulls need to reclaim $2,750 and eventually push above $2,850, where strong resistance sits. If ETH can establish a higher low above $2,600, it could regain momentum and set up for a run towards $3,000 and beyond.

For now, Ethereum remains vulnerable, and traders should closely watch macro developments, liquidation trends, and Bitcoin’s performance, all of which will play a critical role in ETH’s next move.

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