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Ethereum Price Analysis: Will ETH Dump to $2.1K After Getting Rejected at $2.7K?

Author: Content Editor
Ethereum has been rejected from the 100-day moving average (MA) at $2.7K, indicating a bull trap and suggesting sellers' dominance in the market. The price is expected to continue its descent towards the $2.1K level. The rejection at $2.7K led to a 12% decline and pushed the price back below the 100-day MA. The initial surge above the 100-day MA and the neckline of an inverted head and shoulders pattern triggered a short liquidation event, but it was short-lived. The rejection at $2.7K suggests the breakout was false and formed a classic bull trap. In the 4-hour timeframe, Ethereum faced substantial selling pressure above the 0.618 Fibonacci level ($2.7K) from smart money or institutional traders, resulting in a sudden price drop. The current support level is around $2.4K, and if it breaks down, further bearish momentum could push Ethereum towards the $2.1K critical support level. The rejection at $2.7K had a high concentration of short positions, and institutional traders likely exploited this liquidity pool to trigger liquidations and execute their sell orders. The futures market analysis suggests that Ethereum's price may continue its descent towards the $2.4K region and possibly lower. Given the technical setup and market dynamics, Ethereum is expected to maintain downward pressure in the coming days.

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