Ethereum Stalls at $2,400 as Selling Pressure Builds

Ethereum is facing a difficult week as prices hover near $2,390. After a brief climb above $2,400, the asset has lost momentum, shedding between 3% and 6% over the last seven days. Derivatives data suggests that traders are currently prioritizing hedges over new positions, signaling a cautious approach to the current market environment.

Institutional interest has been a bright spot, with consistent inflows into spot Ethereum ETFs recently. However, this interest has not been enough to push the spot price higher. Analysts point to increased downward pressure from leverage unwinds and liquidity shifts. With interest rate expectations changing, risk assets like Ethereum are feeling the squeeze as the broader market adjusts to new macro conditions.

The $2,400 level serves as a critical indicator for traders right now. A sustained drop below this point could increase the risk of a sharper decline toward support levels at $2,290 and $2,160. On the flip side, reclaiming $2,438 would be a necessary step for the bulls to regain control and push toward $2,550.

For now, the market looks set for a period of range bound trading between $2,300 and $2,450. Investors should keep a close watch on the $2,400 threshold, as it will likely determine whether the asset enters a phase of recovery or continues to see a bearish tilt in the coming days.