Ethereum: $2,500 Bears' Next Target?

Ethereum (ETH) has been in a downtrend since falling below $3,000 six weeks ago, signaling a potential continuation of the correction.

Reports hinting at a possible rejection of spot Ethereum ETF filings in the US added to market pessimism.

Analysts predict even lower Ethereum prices if these ETF applications are rejected, according to technical analysis. However, the duration of this decline remains uncertain.

Fibonacci retracement levels were calculated based on ETH's decline from $4,093 to $3,056.

While this did not significantly change the overall market structure on higher time frames, ETH fell below $3,000 in mid-April, tipping the scales towards a bearish structure.

Furthermore, OBV (On-Balance Volume) fell below a key level. Right now, the $3,000 resistance area is great, with momentum in favor of the bears, as seen by the RSI reading of 40.5.

Estimates suggest a potential decline below $2,800, with a focus on the 50% and 61;.8% extension levels. However, it remains uncertain whether Ethereum is experiencing a V-turn or consolidating at these levels.

Analysis of the liquidity charts showed the end of the short-term rally. Just over 24 hours ago, cumulative liquidation levels were significantly negative, indicating more short liquidations than long positions.

Shortly thereafter, the price bounced back from $2,870 to $2,990, wiping out the late short sellers.

Cumulative liquidation levels currently remain negative but less extreme, suggesting further downside potential. The $2,840 zone looms as a short-term target for Ethereum price.