Ethereum prices hold $2,400 as RSI is still bearish

Ethereum’s price rose above $2400 after falling below $2370 on September 3, but the short-term momentum is weakening and liquidation clusters nearby make it vulnerable to a breakout.

Crypto.news reports that Ethereum (ETH( ) traded at around $2408 as of the writing. This is up by 0.66% in the last 24 hours after starting near $2392. The token fluctuated from an intraday low at $2,370 to a daily high of $2419.

The rebound returned ETH above the closely watched $2,400 level, but the token remains below the $2,438 Fibonacci retracement area and the $2,500–$2,550 resistance zone. The upper region has been defended by sellers repeatedly since Ethereum’s rally of late August stopped near $2.550.

Risk perception also remains weak. Brent crude reached a new six-week record of $97.39 in September 3 due to renewed fighting between Iran and the United States. ReutersConcerns that inflation could continue to rise due to higher energy costs.

Also, the markets are preparing themselves for Federal Reserve’s 16th September decision. Prediction market Kalshi placed the probability for a 25-basis point increase as 53%, at the time this was written. An increase in rates would make yielding assets more attractive and put pressure on cryptocurrencies, and other risky assets.

Ethereum loses its short-term momentum

On the 4-hour chart, Ethereum is forming lower highs following its recent advance in late August. ETH is currently trading below the Bollinger Bands middle line of $2,429.79. This acts as a first short-term barrier.

The upper Bollinger Band sits at $2,493.27, placing it near the lower edge of the wider $2,500–$2,550 supply zone. ETH could retest the resistance with a 4-hour close over the midpoint, whereas a break of the upper band will strengthen the case for ETH’s next move towards $2,550.

Momentum does not support this outcome. The relative strength index for the 4-hour period is 43.86. This level is below neutral. The signal average of the 4-hour relative strength index is at 43.86, below neutral 50.

Technical support is provided by the lower Bollinger band at $2.366.32, which closely matches the low session price. If that line is lost, $2,350 would be the next focus followed by a breakout area around $2200.

Daily Ethereum chart maintains bullish structure

Ethereum’s 4-hour structure has a stronger daily setup than Ethereum. ETH remains above both its 50-day and 200-day simple moving-averages at $2.064.47.

This crossover is bullish because the 50-day trend has moved over 200-days, creating a bullish crossing. This crossover shows that the medium-term momentum of Ethereum has increased relative to its longer-term trend. However, it doesn’t prevent a correction in the short term.

Chaikin Money Flow confirms the bullish trend. The indicator is 0.22 and shows that selling pressure has been stronger than buying pressure over the time period. CMF, however, has flattened out after a sharp rise during the breakout in August, suggesting that there is no acceleration of capital flows.

Daan Crypto Trades is a crypto trader. identified The key is $2,400. This level separates a normal breakout from a more severe reversal. Analysts claim that ETH will return to previous range if it fails to hold this zone.

Ted Pillows positioned the next downward trigger slightly below. According to the analyst, a weekly closing below $2350 may open up a route towards $2200. The resistance is centered between $2540 and $2800.

ETH liquidation map shows pressure on both sides

CoinGlass’ one-week Ethereum liquidity heat map shows that leveraged positions are accumulating above and below current prices.

The closest large downside cluster appears around $2,350–$2,360. Moving into this area would liquidate long leveraged positions and force forced sales, increasing the risks of a temporary drop under support.

Liquidity has also gathered around $2,430–$2,450, creating a nearby target if buyers hold $2,400. The move above that range would force traders who are short to liquidate their positions, and accelerate the rebound towards $2,500.

The largest visible liquidation concentration sits much higher, around $2,535–$2,550. This cluster coincides with Ethereum’s recent peak in price and resistance cited analysts. It is therefore the primary upside target if ETH regains its momentum.

The heatmaps of liquidation show the pressure that may be applied to leveraged positions, but do not ensure that prices will rise. The size of the clusters may also be affected by new positions or closed trades.

Ethereum Price: Can it hold up to $2400?

Ethereum must close the day at or above $2,400. It also needs to move over $2,430, which is Bollinger’s midpoint for 4-hour chart. This will help stabilize its structure in the short term. After reclaiming $2450, the focus would be on $2493, and then heavier resistance from $2,500-$2,550.

If $2.400 is not held, the focus will shift to the Bollinger Band at $2.366. The August breakout would be weakened if the Bollinger Band was broken below $2350. This could lead to a close of $2200.

Daily moving averages, positive CMF and the 4-hour chart still support the broad recovery. However, the chart indicates that short-term momentum is controlled by sellers. Ethereum therefore remains at a decision point, with $2,350–$2,400 serving as support and $2,430–$2,550 forming the main recovery barrier.