Ethereum (ETH) Screams “Sell” After Breaking $3,150 – Reversal Confirmed?

Ethereum (ETH) has shed nearly 7% of its value in the past 24 hours as Trump’s tariff threats continue to rattle investors.

Trading volumes remain high at nearly 8% of ETH’s circulating market cap, reflecting growing selling pressure.

ETH Open Interest (OI) – Source: CoinGlass

In addition, open interest (OI) in the futures market spiked today, meaning that short-sellers could be positioning for further downside.

Market sentiment has soured as well, as a result of the latest news. The Fear and Greed Index has dropped to 42, down from a previous 52 print.

Meanwhile, the market is bracing for a data-heavy end of the week, as U.S. agencies will release data on inflation and economic growth.

Ethereum Price Prediction: Strong Bearish Candle Confirms Trend Reversal

We have flagged Ethereum’s latest movements in the 4-hour chart using a brand new signals system.

ETH/USD Hourly Chart (Binance) – Source: TradingView

This signal system identifies decisional time frames across four different time frames (daily, 4-hour, 1-hour, 15-min) to flag high-probability trades.

It seems that the selling pressure increased once ETH hit $3,365 last week, while bulls failed to get past this sell wall on Sunday as Trump shared his tariff threat on Truth Social.

Meanwhile, a sell signal popped up earlier today, as the price broke below a key structural level at $3,150.

This was the uptrend’s previous high, meaning that we can officially say that ETH is once again on a downtrend.

The price has now been dropping for 12 hours straight, confirming the signal’s strength. We could now expect a retest of former support areas that could now turn into resistance.

The first of these former demand zones would be the $3,080 level, followed by the even more relevant $3,150. The latter might be considered the ideal entry for a short position if the price action confirms a rejection.

It is highly likely that Ethereum will revisit its late December lows at around $2,900 if the downtrend persists, especially as geopolitical tensions are favoring a bearish outlook as well.

Three Consecutive Sell Signals Confirm that Bearish Momentum Has Accelerated

Moving to the hourly time frame, we have three consecutive sell signals, all taking place at strategic levels.

ETH/USD Hourly Chart (Binance) – Source: TradingView

The first showed up right after ETH rejected a move above that key resistance at $3,350, the second after breaking its structural support at $3,150, and the third one as Ethereum dropped below $3,080.

This confirms a bearish short-term outlook for the top altcoin. The market will probably take a breather after today’s dramatic drop. That would give late sellers the best chance to enter a short position at a more advantageous price point.

Long liquidations have spiked for three days in a row now. During this period, over $1.2 billion worth of long positions have been wiped out as Trump’s hostilities over Greenland continue.

Breaking past the $3,000 psychological threshold could set off a cascade of long liquidations that could accelerate ETH’s drop to $2,900. Hence, as sell signals continue to pile up across relevant time frames, the outlook for ETH remains dire.