Ethereum price tumbles 5%, can ETH reclaim $2,500 or dump lower?
Is Ethereum’s rally just a bull trap?
Ethereum (ETH) has entered oversold territory, signaling a possible buying opportunity. Here’s what you need to know:
Market Overview
ETH’s Relative Strength Index (RSI) dipped below 30, indicating oversold conditions.
ETH rebounded by over 6% in the past 24 hours, stabilizing around $2,300.
Selling pressure is decreasing, hinting at a potential trend reversal.
Read Ethereum Price Prediction for more detailed insights
Key Technical Levels
ETH has been in a downtrend since early 2025.
Critical support level: $2,480.
If support holds, ETH may recover; if it fails, ETH could drop below $2,000.
Historically, RSI divergences have led to strong price recoveries.
Market Uncertainty Factors
U.S. trade tariffs set for March 1 could trigger more risk-off behavior.
The Bybit hack’s stolen ETH is circulating, potentially affecting liquidity.
Also Read: Decentraland Price Prediction 2025, 2026 – 2030
Liquidations & Short Sellers’ Advantage
ETH liquidations in the past 24 hours: $124 million.
Long traders lost $99.77 million, while short traders lost $24.85 million.
The dominance of short sellers suggests continued bearish sentiment.
Whale Activity: Buying the Dip
The ‘7 Siblings’ wallet bought 12,070 ETH using 28.75 million DAI.
Their average buy price: $2,382 per ETH.
Their total ETH holdings: 1.15 million ETH (~$2.8 billion).
Consistently buying dips signals long-term confidence in Ethereum.
What’s Next?
ETH must reclaim $2,500 to reverse the bearish trend.
Large investors continue accumulating, showing optimism.
If buying momentum strengthens, ETH could recover; otherwise, further declines are possible.
Ethereum remains at a critical juncture. Investors should closely watch support levels, market sentiment, and institutional moves before making decisions.