Ethereum has broken below its ascending trendline support near $2,350, marking a significant technical shift for the cryptocurrency. At the time of reporting, ETH was trading at $2,317 after facing renewed selling pressure on its daily chart.
The price decline follows notable activity from large holders. An Ethereum Foundation-linked wallet recently sold 2,785 ETH, worth approximately $6.42 million, exchanged for USDS through CoWSwap.
Derivatives Market Shows Bearish Signals
Ethereum's funding rates have dropped 56% to 0.004 over the last 24 hours, indicating a significant shift in perpetual futures positioning costs. This decline, which has been progressing since early October, suggests falling demand for leveraged long positions and a move toward more bearish sentiment among traders.
Exchange Reserves Reach Weekly Low
ETH exchange reserves have fallen to their lowest level in a week at $3.2 million. The reduced reserve levels suggest fewer tokens are immediately available on exchanges for selling, potentially limiting spot-market supply. However, reserve declines do not guarantee reduced selling pressure, as holders can transfer ETH to exchanges or sell through alternative venues at any time.
Technical Outlook
The breakdown below $2,350 marks the loss of an ascending trendline that had supported Ethereum's upward trajectory for months. Traders monitoring the recovery will watch whether ETH can reclaim this level. A sustained move back above the broken trendline would weaken the bearish setup and suggest buyers attempting to regain control, while failure to reclaim the level could allow sellers to push prices lower.
