Ethereum Price Prediction: Rebound Ahead or Will ETH Breakdown Toward $2K?

Ethereum is trading near $2.5K after a sharp correction from the $2.7K resistance area, with the latest price action putting a key support zone under pressure. While ETH remains above its daily 100-day and 200-day moving averages, weakening momentum and a recent rebound in the exchange supply ratio suggest that traders should watch for further volatility before assuming the broader recovery will resume. Ethereum’s daily chart shows a strong recovery from the June lows near $1.5K, followed by a sharp rally that carried the asset through the $2K region and into the $2.4K area. ETH subsequently climbed toward the $2.7K resistance zone, where it consolidated for the last few weeks before sellers regained control in early October. The latest rejection from the $2.7K supply zone has pushed ETH back toward $2.4K, the immediate support area. Buyers have started to respond after the latest sell-off, as yesterday’s candle wicked through the support and bounced, but the rebound remains modest and has yet to establish a convincing bullish reversal. If this support holds, ETH could attempt to recover toward the major resistance around $2.7K. A sustained breakout above the level would improve the near-term structure and potentially reopen the path toward $3K. However, a decisive daily close below the $2.4K support zone would weaken the recovery structure, as the ascending channel that has carried the price higher from June lows would also get broken to the downside. In that scenario, the next notable support area lies around $2K-$2.2K where the 100-day and 200-day moving averages have recently printed a bullish crossover. The Relative Strength Index (RSI) has also dropped to approximately 40, indicating weakening momentum and a shift toward bearish territory. Although the indicator is approaching oversold levels, it has not yet reached the conventional threshold below 30. A recovery above 50 would provide a stronger indication that buyers are regaining control, while continued weakness below 40 would leave ETH vulnerable to another test of support. The 4-hour chart provides a clearer picture of the recent selling pressure. Ethereum spent much of late September consolidating between approximately $2.6K and $2.8K before breaking lower aggressively earlier this week. The move accelerated as ETH lost the $2.6K lows, eventually driving the price toward the $2.4K region. The latest candles show a modest recovery toward $2.5K following the sharp downside moves. This suggests that buyers have stepped in around support, but the rebound is still too limited to confirm that the correction has ended. The immediate resistance area is around $2.6K to $2.7K, where ETH must climb through the bearish imbalance formed during the drop. On the downside, the $2.4K support zone is the first level to monitor. ETH has reacted positively from this area, but a r