Ethereum is trading near $2,480, down roughly 2% over the past 24 hours, after a sharp rejection from an intraday high around $2,606. The move has renewed concerns that the second-largest cryptocurrency could slip below the $2,400 support level if selling pressure persists.
Data from CoinGecko shows that ETH has repeatedly attempted to establish $2,500 as a support level, only to meet selling between approximately $2,535 and $2,600. This latest rejection extends a pattern of failed breakouts, leaving buyers unable to hold gains above that zone.
Macro headwinds weigh on risk assets
The pullback comes as markets brace for the Federal Reserve's interest rate decision on September 16. Recent economic data has shifted expectations toward tighter monetary policy, with market estimates now pricing in a probability of a rate increase above 80%. Traders have been reducing exposure to risk assets ahead of the announcement, and Ethereum entered the event after a strong multi-week rally.
Despite the price decline, institutional demand for Ethereum remains positive. US spot Ether exchange-traded funds recorded approximately $216.4 million in net inflows on September 11, including around $148.8 million for BlackRock's ETHA. Over the five trading sessions through September 11, the funds attracted roughly $222.8 million in net inflows, with an additional $121 million entering during the latest reported session. However, these inflows have so far failed to absorb the selling pressure in the $2,535-$2,600 range.
Derivatives positioning could amplify a breakdown
Derivatives data suggests that a break below current support could be volatile. CoinGlass reports aggregate Ether futures open interest near $32.6 billion, with liquidation data showing concentrations of leveraged long positions around $2,466 and $2,391. A fall through $2,460 could trigger a cascade of long liquidations, with the next major concentration sitting just below $2,400.
Technical analysis: key levels to watch
On the daily chart, Ethereum is trading near $2,480 after failing to hold the move toward $2,600. The price remains above the Supertrend indicator, which sits near $2,242, keeping the larger daily trend intact despite the latest decline. A move below $2,400 would expose the $2,300 area before the Supertrend becomes the main support level.
The daily Chaikin Money Flow (CMF) has deteriorated significantly, falling to roughly -0.13 after spending much of the recent recovery above zero. A negative CMF reading indicates that selling volume is currently outweighing buying volume, which aligns with ETH's repeated failure to stay above $2,500. To weaken the immediate downside case, price would need to recover $2,500 and then break through the $2,535-$2,600 supply area. Holding above $2,600 would reopen the path toward the August highs around $2,700-$2,800.
On the 4-hour chart, Ethereum has fallen below its multi-timeframe VWAP near $2,520 after trading above it during the push toward $2,600. Price remaining below $2,520 would keep the latest intraday move tilted toward the $2,460 area. The 4-hour Stochastic RSI has also fallen sharply, with its faster line near 27.8 and the slower line around 49.9. The faster line crossing below the slower line while both decline signals that short-term momentum has weakened since the $2,600 rejection.
A decisive break below $2,460 would put $2,400 in range, followed by the liquidation concentration around $2,391. If selling accelerates across crypto exchanges and extends through that area, the daily chart leaves room toward $2,300 and eventually the Supertrend support near $2,242. Conversely, a recovery above the 4-hour VWAP near $2,520 would be the first sign that buyers are regaining control, but ETH would still need to clear $2,535-$2,600 before the repeated failures around $2,500 can be treated as resolved.
For broader context, Ethereum's recent price action mirrors the pullback seen earlier this month, while ETF inflows have struggled to break resistance ahead of key economic data. The upcoming Fed decision could prove pivotal for risk assets, and traders are watching whether ETH can hold above $2,400.
This article is for informational purposes only and does not constitute financial advice.
