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▲ Ethereum (ETH)/AI-generated image
Ethereum (ETH) is once again struggling to defend the $2,000 support line, and the risk of a re-decline to $1,800 is becoming more prominent than the expectation of a rebound.
According to crypto media outlet Cryptopotato on May 31 (local time), Ethereum is under selling pressure in both long-term and short-term time frames after failing to recover key resistance levels. On the daily chart, it has broken down from a large ascending triangle structure formed from February to May, and on the 4-hour chart, it has been maintaining a bearish trend within a descending channel throughout May.
On the daily chart, Ethereum has been pushed back multiple times from the $2,400 resistance zone, leading to an increased decline. This zone is a major horizontal supply zone and overlaps with a previous breakout level. The price is currently trading below the 100-day moving average near $2,200 and maintains a significant gap with the 200-day moving average, which is declining near $2,500. This indicates that sellers still have the upper hand in the broader trend.
The $2,400 zone has become an even stronger key resistance level due to the recent pullback. As long as Ethereum remains below this zone, any short-term rebound is more likely to be interpreted as a technical retracement rather than a trend reversal. On the downside, the psychological support level of $2,000 is being tested, and if the daily close falls below this level, the probability of a decline to around $1,800, where the February low and demand zone overlap, increases significantly.
The bearish structure is also evident on the 4-hour chart. Ethereum failed to make a meaningful recovery from the mid-channel resistance of the descending channel and is now moving towards the channel's lower boundary again. The first resistance level is around $2,150, where the upper boundary of the descending channel and a horizontal supply zone overlap. Above that, supply zones at $2,250 and $2,400 are presented as key resistance levels. A breakout above the descending channel could lead to a short-term relief rally, but as long as the channel structure is maintained, the price action's center of gravity remains to the downside.
Market sentiment indicators also fail to show strong recovery signals. The Ethereum Taker Buy Sell Ratio has been declining in recent months and is currently around 0.98, below the neutral benchmark of 1.0. This indicator shows the balance between aggressive buyers and aggressive sellers on exchanges; a value below 1 indicates that market sell orders outweigh buy orders. For a sustainable rebound, this ratio needs to recover and maintain above 1, but the current order flow suggests limited upward momentum and potential selling pressure with each rebound.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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