Ethereum Holds Above $2,100 as Dip Buyers Step In, But Bears Still Control Trend
Ethereum (ETH) stayed above the $2,100 level on Wednesday as markets reacted to fresh developments surrounding the US-Iran situation. US President Donald Trump said negotiations with Iran are entering the final stage, while also warning that further action could follow if no agreement is reached.
At the same time, rising US Treasury yields and persistent inflation pressures continue to weaken risk appetite across crypto markets. US investor sentiment toward ETH remains soft, reflected by the Coinbase Premium Index, which has stayed in negative territory since late April. The indicator, which compares ETH prices on Coinbase and Binance, suggests weaker demand from US-based traders.
Institutional sentiment also remains cautious. US spot Ethereum ETFs extended their streak of outflows, recording seven straight days of negative flows after losing $62.3 million on Tuesday, according to SoSoValue data.
In derivatives markets, Ethereum futures open interest recovered by nearly 500K ETH since Monday, partially offsetting the sharp decline seen over the weekend after aggressive long liquidations wiped out more than 1 million ETH positions. Despite the recent sell-off, funding rates remain positive, signaling that some traders are still using leverage to buy the dip.
ETH Technical Outlook: Relief Bounce Inside Bearish Structure
On the 4-hour timeframe, Ethereum remains under bearish pressure after falling below multiple key support zones during the recent decline. The drop pushed ETH into the $2,110-$2,120 demand area, where buyers managed to trigger a short-term rebound.
Even with the recovery, the broader structure still favors bears as ETH trades below major resistance levels near $2,200 and $2,280. Sellers continue defending recovery attempts, limiting bullish momentum for now.
Momentum indicators are beginning to improve slightly. Oscillators are recovering from oversold conditions and attempting a bullish crossover, while histogram bars are showing early signs of strengthening buying momentum.
If ETH can maintain support above $2,100 and reclaim the $2,200 resistance level, the next upside targets could emerge near $2,284 and $2,380. A stronger breakout above those areas may shift sentiment further bullish and expose the $2,460 region.
On the downside, failure to sustain the rebound could trigger renewed selling pressure. A break below $2,100 may open the door for a deeper decline toward the $1,930 support zone, which remains a critical area for bulls to defend.
For now, Ethereum appears to be staging a relief recovery within a broader bearish trend, while traders monitor whether momentum is strong enough to break through nearby resistance barriers.
Ethereum Holds Above $2,100 as Dip Buyers Step In, But Bears Still Control Trend
Ethereum (ETH) stayed above the $2,100 level on Wednesday as markets reacted to fresh developments surrounding the US-Iran situation. US President Donald Trump said negotiations with Iran are entering the final stage, while also warning that further action could follow if no agreement is reached.
At the same time, rising US Treasury yields and persistent inflation pressures continue to weaken risk appetite across crypto markets. US investor sentiment toward ETH remains soft, reflected by the Coinbase Premium Index, which has stayed in negative territory since late April. The indicator, which compares ETH prices on Coinbase and Binance, suggests weaker demand from US-based traders.
Institutional sentiment also remains cautious. US spot Ethereum ETFs extended their streak of outflows, recording seven straight days of negative flows after losing $62.3 million on Tuesday, according to SoSoValue data.
In derivatives markets, Ethereum futures open interest recovered by nearly 500K ETH since Monday, partially offsetting the sharp decline seen over the weekend after aggressive long liquidations wiped out more than 1 million ETH positions. Despite the recent sell-off, funding rates remain positive, signaling that some traders are still using leverage to buy the dip.
ETH Technical Outlook: Relief Bounce Inside Bearish Structure
On the 4-hour timeframe, Ethereum remains under bearish pressure after falling below multiple key support zones during the recent decline. The drop pushed ETH into the $2,110-$2,120 demand area, where buyers managed to trigger a short-term rebound.
Even with the recovery, the broader structure still favors bears as ETH trades below major resistance levels near $2,200 and $2,280. Sellers continue defending recovery attempts, limiting bullish momentum for now.
Momentum indicators are beginning to improve slightly. Oscillators are recovering from oversold conditions and attempting a bullish crossover, while histogram bars are showing early signs of strengthening buying momentum.
If ETH can maintain support above $2,100 and reclaim the $2,200 resistance level, the next upside targets could emerge near $2,284 and $2,380. A stronger breakout above those areas may shift sentiment further bullish and expose the $2,460 region.
On the downside, failure to sustain the rebound could trigger renewed selling pressure. A break below $2,100 may open the door for a deeper decline toward the $1,930 support zone, which remains a critical area for bulls to defend.
For now, Ethereum appears to be staging a relief recovery within a broader bearish trend, while traders monitor whether momentum is strong enough to break through nearby resistance barriers.
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