Ethereum Faces Resistance Near $2,500 After 25% Plunge

Ethereum is experiencing resistance close to $2,500 following a significant 25% drop. The recent price has seen it bounce back above $2,400, currently trading at $2,478, marking a near 5% recovery. As the market stabilizes, the question remains: will Ethereum overcome the $2,500 barrier?

Ethereum Price Marks Crucial 4-Hour Range Breakdown

In the 4-hour price chart, Ethereum’s trend illustrates a bearish breakdown from a consolidation range between $2,529 and $2,883. The price reached a 24-hour low of $2,319 after the breakdown. However, bearish exhaustion has led to a short-term rally, with Ethereum retesting the broken consolidation range. The emergence of a potential evening star pattern near $2,500 suggests a possible bearish reversal.

A Battle at $2,500

Despite the recent bullish action, the price struggles to maintain above the psychological $2,500 barrier, facing resistance at $2,530. Nevertheless, the Chaikin Money Flow Index showing positive trends lends some support to a possible bullish reversal.

The Worst February Ever

February 2025 has been particularly harsh for Ethereum, marking its worst February since 2017 with a nearly 25% decline. If this trend continues, it could go down as the second-worst February in Ethereum’s history.

Whale Feast: Ethereum on Discount?

Whale accumulation signals a potential bullish turnaround, with a considerable increase in holdings ranging from 10,000 to 100,000 ETH, now exceeding 17 million ETH. This suggests that whales are taking advantage of Ethereum’s discounted price.

Staking Surge: A $5 Billion Confidence Boost

The Ethereum staking pool on Aave has seen significant growth, surpassing 2 million ETH, translating to over $5 billion in staked Ethereum. This indicates heightened investor confidence as more individuals stake Ethereum for rewards.

Final Verdict

If Ethereum can rebound above the lower band of the broken consolidation zone at $2,530, it may trend upwards toward $2,900. However, failing to hold above $2,360 could result in a return to previous lows around $2,150.