Chances for ETHUSD rebound increase near $2,700

ETHUSD prices remain under pressure from the downtrend that has been dragging on since the highs of early October. Ethereum's decline has slowed in recent days, but there are still no signs of a rebound. The proximity of the $3,000 threshold may boost bullish activity, but a more significant support level is slightly lower, between $2,400 and $2,700. Traders could arrange a rebound now, but the chances of breaking the trend are highly doubtful.

Technical indicators—Stochastic Oscillator and MACD—indicate an upward reversal, but it may not be enough for market participants. A potential death cross, with the 50-day moving average crossing below the 200-day one, is making investors even more worried. A similar pattern in mid-February heralded a 50% drop in ETHUSD in less than two months, so opening long positions at current prices requires extreme caution.

Fundamentally, buying the dip in the crypto market does not seem justified, especially after yesterday’s minutes from the Federal Reserve’s (Fed) meeting on October 29. The likelihood of a December rate cut is now below 30%. Weak labor market data could change the situation, but the October report has been postponed, while the November statistics will not be released until December 16, after the next Fed meeting.

Ethereum co-founder Vitalik Buterin said yesterday that increased interest from major investors and large inflows in ETFs made ETHUSD more popular but raised questions among supporters of cryptocurrency decentralization. This very feature is what originally encouraged developers to build the network, and they are now reluctant to carve out a privileged position for Wall Street giants. This contradiction poses a serious threat to the Ethereum community.

Consider the following trading strategy:

Sell ETHUSD at the current price. Take profit 1: $2,700. Take profit 2: $2,400. Stop loss: $3,350.