Ethereum USD Slides 4.73%—Technical Oversold Signals Potential Bounce
Ethereum USD (ETHUSD) is trading at $1948.16 as of February 24, 2026, down 4.73% over the past day. The second-largest cryptocurrency by market cap has faced significant selling pressure, with a year-to-date decline of 37.87%. Despite the bearish short-term action, technical indicators suggest the market may be approaching an oversold condition. Understanding the current price action and technical setup is crucial for anyone tracking Ethereum USD movements. We’ll examine what’s driving this decline and what the charts reveal about potential support levels.
Ethereum USD Technical Analysis
The technical picture for ETHUSD reveals several important signals worth monitoring. RSI stands at 28.53, indicating oversold conditions where selling pressure may be easing. MACD shows a value of -255.44 with a signal line at -259.48, suggesting bearish momentum but with a small positive histogram of 4.05 that could signal early reversal potential.
ADX measures trend strength at 47.96, confirming a strong downtrend is in place. Bollinger Bands position ETHUSD near the lower band at 1459.03, with the middle band at 2196.56 and upper band at 2934.10. This placement near the lower band typically indicates extreme price weakness. Support levels cluster around $1905 (day low) and $1459 (Bollinger Band lower), while resistance sits at $1986.59 (day high) and $2196.56 (middle band).
Market Sentiment and Trading Activity
Trading volume for ETHUSD reached 17.38 billion on February 24, 2026, representing 1.84x the average daily volume of 216.3 million. This elevated volume during the decline suggests institutional participation in the selloff. The Money Flow Index (MFI) at 45.85 indicates moderate selling pressure without extreme capitulation.
Liquidation data shows significant activity in leveraged positions, with both long and short liquidations occurring as volatility spikes. The Awesome Oscillator reading of -629.65 reflects strong bearish momentum, though oversold RSI conditions suggest buyers may be stepping in at lower levels. Market sentiment remains cautious, with traders reassessing positions after the sharp decline from the 50-day moving average of $2616.67.
Ethereum USD Price Forecast
Monthly Forecast: ETHUSD is projected to reach $1370.11 by end of March 2026, representing a -29.6% decline from current levels. This target suggests further downside if selling continues, though it aligns with historical support zones.
Quarterly Forecast: By end of Q1 2026, ETHUSD could trade at $2731.37, implying a +40.2% recovery from current prices. This level sits near the 200-day moving average of $3488.55 and would represent a significant bounce from oversold conditions.
Yearly Forecast: The 12-month target stands at $2960.01, representing a +51.9% gain from February 24 levels. This projection suggests Ethereum USD could recover substantially if market conditions stabilize and institutional demand returns. Forecasts may change due to market conditions, regulations, or unexpected events.
Why Is Ethereum USD Dropping Today
Ethereum USD’s 4.73% daily decline reflects broader cryptocurrency market weakness and profit-taking after the recent rally attempt. The decline from the 50-day moving average of $2616.67 indicates sellers are in control, with the price now trading 25.5% below this key moving average.
Year-to-date performance shows ETHUSD down 37.87%, suggesting sustained selling pressure throughout 2026. The 6-month decline of 60.97% from the year high of $4955.90 demonstrates the severity of the downtrend. Technical factors including the strong ADX reading of 47.96 confirm the downtrend remains intact, while oversold RSI conditions suggest the immediate selling pressure may be nearing exhaustion.
Support and Resistance Levels for ETHUSD
Key support levels for Ethereum USD cluster at multiple zones that traders are monitoring closely. The immediate support sits at $1905.12 (today’s low), followed by the Bollinger Band lower at $1459.03. The 200-day moving average at $3488.55 represents major resistance overhead, with the 50-day moving average at $2616.67 acting as intermediate resistance.
The year low of $1383.26 established earlier in 2026 provides psychological support, while the year high of $4955.90 remains far above current trading levels. Keltner Channel support sits at $1885.35, providing another zone where buyers may defend. Breaking below $1459 would signal further weakness toward the year low, while a recovery above $2196.56 (Bollinger Band middle) would suggest the oversold bounce is gaining traction.
What’s Next for Ethereum USD Price
The oversold RSI reading of 28.53 historically precedes bounces, though it doesn’t guarantee immediate reversal. ETHUSD needs to reclaim the $2196.56 level to confirm the downtrend is losing momentum. Volume patterns suggest institutional traders are watching these support zones, with elevated trading activity indicating significant interest at lower prices.
The quarterly forecast of $2731.37 represents a realistic recovery target if the oversold bounce materializes over the next 4-6 weeks. However, the strong ADX trend reading means the downtrend could persist if selling pressure resumes. Traders should monitor the $1905-$1459 support zone for potential reversal signals, including RSI divergences or MACD histogram turning positive.
Final Thoughts
Ethereum USD trades at $1948.16 on February 24, 2026, down 4.73% daily amid a broader market decline. Technical analysis reveals oversold conditions with RSI at 28.53, suggesting selling pressure may be easing, though the strong ADX reading of 47.96 confirms the downtrend remains intact. Support levels cluster at $1905.12 and $1459.03, while resistance sits at $2196.56 and $2616.67. The quarterly forecast of $2731.37 suggests potential recovery if oversold conditions lead to a bounce, while the yearly target of $2960.01 implies substantial upside if market sentiment improves. Volume patterns and liquidation data indicate institutional participation in both the selloff and potential support buying. Traders monitoring Ethereum USD should watch for RSI divergences and MACD histogram turning positive as potential reversal signals. The current setup presents both risk and opportunity, with oversold technicals balanced against a confirmed downtrend that could extend further if support breaks.
FAQs
ETHUSD declined due to profit-taking and broader cryptocurrency market weakness. The price fell from the 50-day moving average of $2616.67, with sellers in control. Year-to-date losses of 37.87% reflect sustained selling pressure throughout 2026.
RSI at 28.53 indicates oversold conditions, suggesting selling pressure may be easing. Historically, oversold readings often precede bounces, though they don’t guarantee immediate reversal. This level suggests potential support from buyers entering at lower prices.
Immediate support sits at $1905.12 (today’s low), followed by the Bollinger Band lower at $1459.03. The year low of $1383.26 provides psychological support. Breaking below $1459 would signal further weakness toward the year low.
The quarterly forecast for Ethereum USD stands at $2731.37, representing a 40.2% gain from current levels. This target aligns with the 200-day moving average and suggests potential recovery if oversold conditions lead to a bounce.
Yes, the ADX reading of 47.96 confirms a strong downtrend remains in place. While oversold RSI suggests a potential bounce, the trend strength indicates selling pressure could resume if support breaks.
Disclaimer:
Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.