The current technical indicators for Ethereum (ETH) suggest a bearish trend, as it is trading below key moving averages. The 50-day moving average is around $2,900, while the 200-day moving average is approximately $3,100. The Relative Strength Index (RSI) for ETH is at 45, indicating a neutral range. The MACD line and signal line are below the zero line, suggesting bearish momentum, but the narrowing histogram hints at a potential reversal or consolidation in the near term.

Key support levels for ETH are at $2,630 and $2,500, while resistance levels are observed at $2,800 and $2,900. The breach of the $2,764.75 support level and the formation of a potential double top pattern indicate the possibility of further declines if the $2,630 neckline is broken. However, there have been significant outflows of ETH from crypto derivatives exchanges, indicating potential accumulation by investors, which could lead to a price rally.

Given these factors, the short-term outlook for ETH remains cautious. Maintaining support above $2,630 and experiencing increased buying pressure could allow ETH to retest resistance levels at $2,800 and $2,900. However, a break below $2,630 may result in further declines towards $2,500. It is important to note that investing in cryptocurrencies carries risks due to market volatility, regulatory uncertainties, and technological developments, and investors should take appropriate risk management strategies and seek advice from financial professionals.



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