FX.co ★ Sud | #Ethereum chart analysis

The price of Ethereum (ETH) briefly surpassed the psychological $2,000 threshold before retreating by approximately 3%. This decline was driven by significant leadership changes at the semiconductor giant Nvidia, which triggered a sharp sell-off in artificial intelligence (AI) stocks—a trend that subsequently spilled over into the digital asset market. The catalyst for this sell-off was the sudden resignation of Jensen Huang, Nvidia’s CEO and Chairman. This followed reports of a personal relationship between Huang and Kimberly Powell, the company’s Vice President in charge of the healthcare division. These allegations intensified the already rigorous scrutiny surrounding Huang, further compounded by emerging details regarding his ties to a Chinese executive named Huang Li—an individual identified by U.S. officials as a Chinese intelligence operative. Following the announcement of his resignation, shares in AI companies and the burgeoning cloud infrastructure sector plummeted. Despite a slight subsequent recovery, the declines remained significant: Nvidia’s share price fell by 10%, while shares of Nebius (NBIS), CoreWeave (CRWV), and Iris Energy (IREN) saw sharp drops of 21%, 14%, and 9%, respectively. Given the growing positive correlation between digital assets and artificial intelligence (AI) stocks in recent months, the intense volatility in tech stocks quickly impacted cryptocurrency valuations, causing the global crypto market capitalization to shrink by 5.7% within 24 hours. According to Coinglass data, the fall of Ethereum’s price below $2,000 triggered a chain reaction, resulting in $126.7 million worth of forced liquidations in the derivatives market during the same period. Bullish traders who employed excessive leverage were hit the hardest, with $103.9 million in long positions being forcibly liquidated. Meanwhile, indicators of institutional demand showed a persistent outflow of funds from Ethereum investment vehicles. Data compiled by SoSoValue revealed that, on Wednesday alone, spot Ethereum exchange-traded funds (ETFs) in the United States saw net outflows totaling $144.8 million. Since early November, these funds have recorded net inflows on only a single day, reflecting a sustained, weak trend. This persistent selling pressure from both institutional and local investors is reflected in the "Coinbase Premium Index"—tracked by CryptoQuant—which serves as a key indicator of sentiment in the U.S. spot market. The index has remained in negative territory since early September, confirming that U.S. investors continue to drive the current sell-off. From a technical analysis perspective on the daily chart, although the price of Ethereum briefly dipped below $2,000 before settling just above it—at approximately $2,016—the overall trend structure remains decidedly bearish. The spot market price continues to trade below the 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs). These moving averages are clustered tightly between $2,220 and $2,334, acting as overhead resistance. With the short- and medium-term moving averages trending downward above the current price, bearish pressure persists—even as momentum indicators have fallen into oversold territory. Specifically, the 14-day Relative Strength Index (RSI) sits at approximately 28, while the Stochastic oscillator hovers at a very low level of 7. This suggests that as long as the price remains trapped below these moving averages, any short-term rebounds are likely to be merely corrective. On the downside, sellers are exerting strong pressure on the key support level at $1,971. If this support level is decisively broken on the daily chart, Ethereum could test deeper structural support levels, such as $1,827 and $1,706. Conversely, on the upside, initial resistance lies at $2,101—a level where Ethereum attempted a rebound on Wednesday but faced rejection, leading to a pullback. Other resistance levels include $2,204, the 20-day exponential moving average (EMA) at $2,227, and $2,250. Furthermore, a key resistance confluence zone is formed by the 100-day EMA ($2,320) and the 50-day EMA ($2,334).