Although Ethereum’s price has been steadily declining, it is attempting a recovery but faces a possible pullback at key price resistance levels. The market is now closely watching whether ETH can surge past $3,036 or if a further downside is inevitable.

At the time of publication, ETH was trading at $2,774, representing a 2% and 4% increase in the past day and week, respectively. With bearish signals mounting, the coming days could determine Ethereum’s next major move. Ethereum has been in a clear downtrend since mid-December, failing to sustain momentum above $4,000.

The cryptocurrency remains under pressure, currently trading below the 50- and 200-day moving averages. Interestingly, ETH experienced a sharp price decline on February 3, dropping as low as $2,160.

Options Market Shows Mixed Sentiment

If the price fails to break out, the next major support zone lies at $2,538. On the 4-hour chart, Ethereum ’s price has been consolidating for weeks, trading between a low of $2,584 and a high of $2,777.

The Relative Strength Index (RSI) is approaching the oversold zone, currently at 64, indicating a possible shift in momentum. If the token fails to gain momentum, the next level to watch in the coming weeks includes $2,589.

Despite the price weakness, Ethereum’s options market reflects a cautiously optimistic stance. However, analysts note that large investors are hedging downside risks with put options, reflecting ongoing uncertainty.

While traders are positioning for a potential rebound, Ethereum remains at risk of heavy liquidations. A drop below $2,614 could trigger further downward pressure facing the token, according to CoinMarketCap data.

External Factors

This could amplify selling pressure and accelerate a move lower. Beyond technical indicators, macroeconomic concerns are adding to Ethereum’s challenges. Ongoing trade tensions between the US and China have raised concerns among investors, as new import tariffs could impact global markets.

Additionally, traders are closely monitoring geopolitical developments, including a planned meeting between US and Chinese leaders aimed at resolving trade disputes, Cointelegraph reported.

Ethereum’s near-term price action hinges on whether it can reclaim the $2,700 level or if sellers will push it toward the next major support at $2,350. Investors should brace for potential volatility as the market navigates critical support and resistance zones.