Ethereum continued to trade under strong pressure this week as bearish momentum strengthened across derivatives, spot flows, and broader market sentiment. After losing several major support zones on the 4-hour chart, the asset fell near $2,120. Additionally, a multi-million dollar exploit targeting the Verus-Ethereum bridge has added new uncertainty to the market.
Technical indicators then showed sustained weakness $ETH The price failed to hold the $2,350 resistance area. Sellers quickly regained control and pushed the asset below multiple exponential moving averages. As a result, analysts now expect volatility to rise as traders react to increased liquidation risk and weakening momentum.
Ethereum struggles below key resistance levels
Ethereum recently lost the 0.236 Fibonacci retracement level near $2,168. This breakdown strengthened short-term bearish control and increased downside pressure towards the $2,000 psychological area.
Prices are currently trading below the 20, 50, 100, and 200 EMAs. Moreover, the supertrend indicator continues to flash sell signals, reflecting strong downward momentum. $ETH Attempts to rebound after the recent capitulation phase also failed to continue.
The immediate support zone is around $2,089, which recently served as a local bottom. If the seller falls below that level, $ETH It could quickly fall towards $2,050. Additionally, traders continue to closely monitor the $2,000 level as it is a major macro support area.
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On the upside, the bulls face strong resistance near $2,168 and $2,217. The broader recovery zone remains between $2,257 and $2,296, where selling pressure was previously accelerating. Therefore, Ethereum will need to regain those levels before a meaningful bullish reversal emerges.
Open interest suggests rising liquidation risk
Ethereum derivatives data revealed an increase in open interest despite the price decline. Open interest previously surged over $60 billion during the period $ETHrose significantly and then corrected towards its current level of nearly $30 billion.
However, rather than actively exiting, traders continue to hold leveraged positions. This tendency often increases the likelihood of price fluctuations due to liquidations during periods of volatility.
Spot flow activity also reflected cautious sentiment across the exchange. A large inflow surge of over $600 million was recorded in the earlier period, suggesting temporary accumulation activity. Nevertheless, subsequent increases in outflows dominated trading activity and offset those gains.
Recent flow data showed that daily capital inflows and outflows have decreased as traders wait for strong direction in the market. As a result, Ethereum’s near-term outlook remains fragile and uncertainty remains.
Verus-Ethereum Bridge Exploitation Adds New Uncertainty
A blockchain security company recently detected suspicious activity related to the Verus-Ethereum bridge. The attackers reportedly drained approximately $11.58 million from the bridge’s reserves. $ETHtBTC, USDC.
Researchers discovered that the exploit targets a flaw in payment validation logic. Although the bridge correctly verified the integrity of the transaction, it could not confirm whether the payment amount matches the value in the source chain.
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The attacker reportedly sent a minimal Verus-side transaction worth almost 1 cent. However, manipulated payment data allowed the bridge to free up millions of dollars in assets. Additionally, the stolen funds were quickly converted into cash. $ETH I then moved it to another wallet.
Technical outlook for Ethereum price
Key levels remain important as Ethereum is trading under strong bearish pressure after recently breaking below a key support zone.
Top level: $2,168 remains the first recovery hurdle, followed by the 0.382 Fibonacci retracement level at $2,217. A stronger breakout could pave the way for the $2,257-$2,296 supply zone and ultimately retest the key $2,350 resistance area.
Lower price level: $2,089 serves as immediate support after the recent decline. Below that, traders are focusing on the psychological $2,050 area, but a deeper correction could expose Ethereum to the key macro support level at $2,000.
Upper limit of resistance: The $2,250-$2,300 area remains the most important barrier to a bullish recovery in the medium term. Ethereum needs to regain this zone to weaken the current bearish structure and regain stronger upward momentum.
The technical structure suggests that Ethereum remains locked in a strong bearish continuation phase and momentum indicators remain in favor of sellers. However, oversold conditions and increased derivative positioning could trigger a sharp short-term rebound if buyers regain control above the nearby resistance.
Will Ethereum go up?
Ethereum’s near-term outlook largely depends on whether the bulls can defend the $2,089 support zone while regaining momentum above $2,168. Stable open interest near historic highs indicates that traders continue to hold leveraged positions, which could increase volatility in both directions.
If buyers are successful in reclaiming the $2,217 and $2,257 resistance clusters, Ethereum could signal a broader recovery towards $2,350. Additionally, improving spot inflows and easing market fears could support a stronger continuation of the rally.
However, if the price fails to hold at $2,089, bearish momentum could increase and liquidation pressure could accelerate toward $2,050 and even $2,000. Continued uncertainty surrounding the recent Verus-Ethereum bridge exploit may also weigh on investor confidence in the short term.
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For now, Ethereum remains in a decisive zone where technical confirmation and market sentiment will determine the next big direction.
