Ethereum continued trading under heavy pressure this week as bearish momentum strengthened across derivatives, spot flows, and broader market sentiment. The asset dropped near $2,120 after losing several major support zones on the four-hour chart. Additionally, a multi-million-dollar exploit targeting the Verus-Ethereum bridge added fresh uncertainty to the market.
Technical indicators showed sustained weakness after $ETH failed to hold the $2,350 resistance region. Sellers quickly regained control and pushed the asset below multiple exponential moving averages. Consequently, analysts now expect heightened volatility as traders react to growing liquidation risks and weakening momentum.
Ethereum Struggles Below Key Resistance Levels
Ethereum recently lost the 0.236 Fibonacci retracement level near $2,168. That breakdown strengthened short-term bearish control and increased downside pressure toward the $2,000 psychological region.
Price currently trades below the 20, 50, 100, and 200 EMAs. Moreover, the Supertrend indicator continues flashing a sell signal, reflecting strong downward momentum. $ETH also failed to sustain rebound attempts after the recent capitulation phase.
The immediate support zone sits around $2,089, which recently acted as a local bottom. If sellers break below that level, $ETH could quickly slide toward $2,050. Besides, traders continue watching the $2,000 level closely because it represents a major macro support area.
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On the upside, bulls face strong resistance near $2,168 and $2,217. The broader recovery zone remains between $2,257 and $2,296, where selling pressure previously accelerated. Hence, Ethereum must reclaim those levels before any meaningful bullish reversal emerges.
Open Interest Signals Rising Liquidation Risk
Ethereum derivatives data revealed elevated open interest despite falling prices. Open interest previously surged above $60 billion during $ETH’s major rally before correcting toward current levels near $30 billion.
However, traders continue holding leveraged positions instead of exiting aggressively. That trend often increases the probability of liquidation-driven price swings during volatile periods.
Spot flow activity also reflected cautious sentiment across exchanges. Earlier periods recorded massive inflow spikes exceeding $600 million, signaling temporary accumulation activity. Nevertheless, stronger outflows later dominated trading activity and offset those gains.
Recent flow data showed smaller daily inflows and outflows as traders waited for stronger market direction. Consequently, Ethereum’s short-term outlook remains fragile while uncertainty persists.
Verus-Ethereum Bridge Exploit Adds Fresh Uncertainty
Blockchain security firms recently detected suspicious activity involving the Verus-Ethereum bridge. Attackers reportedly drained approximately $11.58 million from bridge reserves containing $ETH, tBTC, and USDC.
Investigators found the exploit targeted a flaw in payout validation logic. The bridge verified transaction integrity correctly but failed to confirm whether payout amounts matched source-chain values.
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The attacker reportedly submitted a minimal Verus-side transaction worth nearly one cent. However, manipulated payout data allowed the bridge to release millions in assets. Additionally, the stolen funds were quickly converted into $ETH and transferred into another wallet.
Technical Outlook For Ethereum Price
Key levels remain critical as Ethereum trades under heavy bearish pressure following its recent breakdown below major support zones:
Upside levels: $2,168 remains the first recovery hurdle, followed by $2,217 at the 0.382 Fibonacci retracement level. A stronger breakout could open the path toward the $2,257–$2,296 supply zone and eventually retest the major $2,350 resistance area.
Downside levels: $2,089 serves as immediate support after the latest sell-off. Below that, traders are watching the psychological $2,050 region, while a deeper correction could expose Ethereum to the critical $2,000 macro support level.
Resistance ceiling: The $2,250–$2,300 region remains the most important barrier for medium-term bullish recovery. Ethereum must reclaim this zone to weaken the current bearish structure and restore stronger upward momentum.
The technical structure suggests Ethereum remains trapped inside a strong bearish continuation phase, with momentum indicators still favoring sellers. However, oversold conditions and elevated derivatives positioning could trigger sharp short-term rebounds if buyers regain control above nearby resistance.
Will Ethereum Go Up?
Ethereum’s short-term outlook depends heavily on whether bulls can defend the $2,089 support zone while reclaiming momentum above $2,168. Stable open interest near historically high levels shows traders continue holding leveraged positions, which may increase volatility in both directions.
If buyers successfully reclaim the $2,217 and $2,257 resistance cluster, Ethereum could stage a broader recovery toward $2,350. Additionally, improving spot inflows and easing market fear could support stronger upside continuation.
However, failure to hold $2,089 may intensify bearish momentum and accelerate liquidation pressure toward $2,050 and potentially $2,000. Ongoing uncertainty surrounding the recent Verus-Ethereum bridge exploit may also weigh on investor confidence in the near term.
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For now, Ethereum remains in a decisive zone where technical confirmation and market sentiment will determine the next major directional move.
