Ethereum Struggles Between $2.1K–$2.8K: Breakout or Breakdown?

• Ethereum struggles between $2,100–$2, 800 as sellers defend key resistance levels.
• Retail traders increase short positions, signaling growing bearish sentiment.
• A breakout above $2,825 could trigger a short squeeze and push prices higher.

The price of Ethereum is stuck between $2,100 and $2,800, with no clear winner in sight. Buyers push higher, but sellers stand firm at key resistance levels. Every attempt to break above $2,800 has failed, leading to more bearish pressure. Meanwhile, traders keep a close watch on critical support zones. A decisive move could trigger a breakout or a deeper drop. Will Ethereum rally, or is another sell-off coming?

Retail Traders Bet Against Ethereum as Short Positions Rise

Ethereum bounced to $2,775 after falling 10% from $2,850. Despite this recovery, bearish sentiment grows stronger. Retail traders have increased short positions while reducing long exposure. The Short Ratio has climbed above 30%, while the Long Ratio now sits below 75%. More traders expect lower prices, fueling negative market sentiment.

Open Interest continues to rise, showing new short positions instead of long liquidations. A break below $2,550 could send Ethereum toward $2,450. Further weakness may lead to deeper support at $2,320 or even $2,250. Meanwhile, Binance has been moving large amounts of Ethereum. Transfers range from 1,003 ETH to 1,520 ETH, worth millions of dollars.

Key Price Levels Could Determine Ethereum’s Next Move

Ethereum’s price action raises speculation about market liquidity or potential selling pressure. Large players often act ahead of major price swings, adding more uncertainty. Technical indicators paint a mixed picture. The hourly MACD remains bearish, and the RSI sits below 50, signaling weakness.

However, past cycles have shown strong reactions around the .786 Fibonacci retracement level. Many traders watch this area for a potential bounce. A breakout above $2,825 could trigger a short squeeze, forcing sellers to buy back positions. This move could send Ethereum surging toward $3,000.

If selling pressure persists, another drop could test $2,100. Market sentiment remains fragile, and momentum could shift quickly. A breakout or breakdown feels inevitable. Traders must stay alert as Ethereum nears a major turning point.