🚀Ethereum price prediction: Is $2500 the next bearish target for ETH?

Ethereum (ETH) has been in a bearish trend since falling below the $3,000 mark six weeks ago. Reports indicating potential rejections of spot Ethereum exchange-traded funds (ETFs) in the U.S. have further fueled bearish sentiment in the market. Analysts foresee lower prices ahead if these ETFs face rejection, aligning with technical analysis that suggests continued downside.

📉 Technical Analysis and Price Predictions

Fibonacci retracement levels were plotted based on ETH's drop from $4,093 to $3,056, marking a significant shift in market structure when ETH fell below $3,000. The On-Balance Volume (OBV) also declined below a critical level, with the $3,000 resistance zone showing strength. The Relative Strength Index (RSI) reading of 40.5 indicates bearish momentum, suggesting a potential drop below $2,800 based on Fibonacci extension levels.

📊 Liquidity and Short-Term Bounce

The liquidity chart reflects short-term dynamics, showing negative cumulative liquidations indicating more short liquidations than longs. A recent bounce from $2,870 to $2,990 cleared out late short sellers. However, current cumulative liquidity levels remain negative but less extreme, leaving room for further downside. The short-term price target for Ethereum is around the $2,840 region, highlighting ongoing bearish pressure in the market.