Ethereum dropped below $2,900 after failing to hold above $2,950, raising questions about whether buyers can mount a sustained recovery. The cryptocurrency fell to $2,775 before consolidating, now trading beneath key technical levels that could determine its next move.
What Happened: Price Breakdown
Ethereum attempted to push above $2,950 but reversed course, breaking below $2,920 and $2,900. The decline accelerated as sellers pushed the price through $2,820, establishing a low at $2,775.
The cryptocurrency now trades below its 100-hour Simple Moving Average and faces resistance from a bearish trend line at $2,925.
Current consolidation sits near the 23.6% Fibonacci retracement level of the move from $2,993 to $2,775.
A recovery attempt would first need to clear $2,850 resistance. The 50% Fibonacci level at $2,880 represents the next barrier, followed by major resistance at $2,925 where the trend line intersects.
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Why It Matters: Technical Breakdown
Breaking above $2,925 could open a path toward $3,000, with further upside potentially reaching $3,080 or $3,120.
However, failure to reclaim $2,850 risks additional downside pressure.
Support levels sit at $2,800 and $2,775. A break below $2,775 could accelerate losses toward $2,720 and $2,640, with critical support at $2,620.
Technical indicators reflect weakening momentum, with the MACD losing strength in bearish territory and the RSI dropping below 50. These conditions suggest bulls face an uphill battle to reclaim control without clearing resistance at $2,925.
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