Support pressure at $24.86: Can eToro stock avoid deeper losses?

Traders Union
All News
Stocks
EToro slides 4.18% to $28.08 today

Highlights

eToro Group will acquire U.S. brokerage TradeZero for up to $231 million in cash and stock, targeting U.S. market expansion with deal closure expected in 2027 pending regulatory approval.
eToro posted strong fundamentals with $53 million net income, up 77% year over year, and adjusted earnings per share of $0.68 on $1.59 billion revenue, beating analyst expectations.
Shares of eToro stock trade below key moving averages with negative momentum indicators, projected to consolidate in the $24.86 to $31.3 range with a strong probability of further decline.

Expansion strategy drives sentiment despite persistent selling pressure

eToro Group Ltd. agreed to acquire U.S. brokerage TradeZero for up to $231 million in cash and stock, a deal set to close in the first half of 2027 pending regulatory approval, according to Finance Yahoo. This move signals an ambition for long-term expansion into the U.S. trading market but does not have immediate financial effects. In the most recent quarter, eToro posted net income of $53 million, a 77% year-over-year increase as reported by Hokanews, and achieved adjusted earnings per share of $0.68 on revenue of $1.59 billion, surpassing analyst expectations according to Marketscreener, though price action has remained under broader selling pressure.

Bearish momentum confirmed as oversold signals prevail below resistance

Below the MA-20 at $31.55, MA-50 at $34.34, and MA-200 at $35.61, ETOR faces immediate resistance at the Ichimoku Kijun level of $31.9. Momentum signals remain negative: both MACD and ADX confirm bearish market momentum, while RSI, CCI, and Stochastic RSI all indicate oversold conditions. Bull/Bear Power points to sellers dominating the market, and the Awesome Oscillator corroborates ongoing weakness. No notable bullish divergences are observed across these indicators.

Downside risk persists as consolidation likely to precede next move

Over the next two to three trading days, ETOR is expected to consolidate within a range between $24.86 and $31.3, in line with current volatility. The probability of a rebound is considered low, with the likelihood of further declines deemed very high. A bullish scenario would require a breakout above $31.9, whereas a drop below $24.86 would likely extend the downtrend.

Viktoras Karapetjanc, analyst at Traders Union, sees eToro’s progress on fundamentals as encouraging. He notes that earnings have surprised to the upside and the TradeZero deal sets a clear path toward future U.S. growth. However, he believes market sentiment and technical momentum remain a headwind for now. Karapetjanc expects the stock to consolidate before any sustained recovery attempt. "Solid fundamentals are forming a base, but I’m looking for a shift in sentiment and trend before turning more bullish in the short term."

Earlier, analysts noted that eToro remained under sustained selling pressure despite positive earnings and an announced acquisition. The current analysis corroborates this bearish outlook, with traders advised to monitor the $24.86 level as a potential trigger for further downside risk.

Source of Data: ETOR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.