Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is currently facing a challenging market sentiment and bearish price action that could potentially lead to further price drops. As of February 19, 2025, ETH has experienced a 3.5% decline in the past 24 hours, bringing its price to around $2,620. This downward trend has placed Ether at a critical juncture, with the possibility of nearing the $2,000 mark if the decline continues.
Ethereum Price Action and Current Momentum
The recent 3.5% drop in ETH’s price has caught the attention of traders and investors, resulting in a 10% increase in trading volume. Technical analysis indicates that ETH has been consolidating within a range of $2,565 to $2,800 over the past two weeks. However, the recent price dip has brought the asset closer to the lower end of this range, making it more susceptible to further declines.
Analysts suggest that if ETH fails to hold above the $2,560 level and drops below it, there is a high likelihood of a 15% decline, potentially reaching $2,120 in the near future. On the other hand, if the price manages to stay within the consolidation range, it may continue to trade sideways for the time being. The overall sentiment remains bearish, especially with ETH trading below the 200 Exponential Moving Average (EMA), signaling a downtrend.
Traders’ and Investors’ Mixed Sentiment
Despite the bearish outlook, on-chain data from Coinglass shows that exchanges have witnessed an outflow of over $68 million worth of ETH in the past 24 hours. This outflow suggests that investors and traders might be accumulating the token, creating buying pressure that could potentially drive the price higher. However, the current sentiment has shifted towards the bearish side.
Intraday traders are predominantly focused on the bearish scenario, with over-leveraged short positions amounting to $121 million at $2,650. Conversely, long positions at $2,605 are held at around $90 million, indicating a higher bearish sentiment in the market. Combining these factors, it seems that bears are in control and are likely aiming to push the price below the breakout level.
In conclusion, Ethereum’s price drop and current market sentiment suggest a challenging road ahead for the asset. Traders and investors should monitor the price action closely and be prepared for potential further declines in the near term.