- Ethereum is struggling to maintain momentum after failing to break the $2,000 resistance, with bearish on-chain indicators suggesting a possible price reversal.
- Declining user activity and heavy resistance between $2,066 and $2,517 could trigger a pull
Ethereum (ETH) has entered a phase of indecision after a promising recovery from its April low of $1,453. Despite showing early signs of bullish momentum, the second-largest cryptocurrency by market cap has struggled to reclaim the $2,000 resistance zone—a critical psychological and technical barrier. At press time, ETH is hovering around $1,833, caught in a sideways consolidation between $1,756 and $1,833 since April 23.
Bearish Divergence Raises Red Flags
One of the clearest warning signs is the shift in Ethereum’s price–Daily Active Addresses (DAA) divergence. Once a bullish indicator suggesting increased on-chain activity, the metric has now flipped bearish, plunging to -51%. This indicates waning user interaction with the network, undermining the sustainability of ETH’s recent price rebound.
Also read: OM Token Price Crashes 90%: 86% of Investors Below Break-Even as Bearish Trend Deepens
Mounting Resistance Ahead
Further adding to the bearish outlook is Ethereum’s position within the Global In/Out of the Money (GIOM) model. Data from IntoTheBlock reveals that between $2,066 and $2,517, over 69 million ETH were acquired by approximately 12.67 million addresses. As the price nears this range, selling pressure may intensify as holders attempt to break even, creating a strong resistance wall that could stall any upward momentum.
Technical Momentum Wanes
Technically, Ethereum had broken out of a descending channel earlier in the month, but its momentum has since faded. The Chaikin Money Flow (CMF), which measures buying pressure, has declined from 0.16 to 0.04, signaling reduced bullish activity. Should this trend persist, ETH may retrace further, potentially testing support at $1,578.
Still, hope remains for bulls. If buying interest picks up again, Ethereum could retest the $2,028 level. A confirmed breakout above that could open the door for a rally toward $2,426, the 0.382 Fibonacci retracement level.
For now, Ethereum stands at a critical juncture. Unless demand rebounds swiftly, the current indicators suggest a near-term reversal may be on the horizon.