Ethereum price outlook weakens as $100M long liquidations fuel selloff
Ethereum struggles to recover as bearish momentum persists.
Ethereum price has struggled through a steep decline this week, shedding over 19% in the first three trading days alone.
A brief 5% recovery on Thursday has provided some relief, yet the broader trend remains bearish, with Ethereum now hovering near $2,375. The failure to reclaim key levels and the ongoing pressure from liquidations suggest further downside risks.
Despite Thursday’s modest recovery, technical indicators signal persistent bearish momentum. The Relative Strength Index (RSI) on both the daily and 4-hour charts remains in negative territory, reinforcing the likelihood of continued weakness. Resistance at $2,450 may cap any further upside in the short term, which could redirect Ethereum downward for a fourth consecutive day of losses.
Ethereum price forecast: RSI and technical resistance suggest downside pressure
Ethereum price dynamics (Jan 2025 - Feb 2025). Source: TradingView
Due to the extent of the bearish dominance in the last 24 hours, Ethereum liquidations surged to $124 million, with long liquidations accounting for approximately $100 million, much higher than short liquidations. This suggests that leveraged bulls were caught off guard by the sharp selloff, giving sellers an edge in dictating price action. If Ethereum fails to reclaim the $2,500 level, bearish momentum could intensify, pushing prices lower.
Overall, Ethereum remains vulnerable to further declines unless it can secure support and sustain a meaningful recovery. Traders will be watching whether $2,375 holds as a key level or if additional pressure forces Ethereum toward lower price zones. The current market dynamics suggest that until a decisive shift in sentiment occurs, sellers are likely to maintain control.
Ethereum rebounded from $2,333 to trade above $2,450, reducing its weekly loss from 17% to 11%. Bybit’s ETH reserves recovered to 372K ETH after receiving major inflows from Binance.
