Ethereum remains under pressure on a year-to-date basis, but the chart structure has started to draw attention. According to data cited by crypto.news, ETH was trading at $2,172 at press time, down 8% from its weekly high and 35.7% below its yearly high of $3,379. Even with that decline, a large cup-and-handle pattern on the daily chart is now putting $2,400 at the center of the setup.
The pullback has tracked weakness across Bitcoin and the broader crypto market. The article points to several macro pressures weighing on risk assets: U.S. tariff threats against the EU and Canada, a worsening conflict involving the U.S. and Iran in the Middle East, and a hawkish Federal Reserve stance on rate cuts this year. Capital has also been rotating into traditional safe-haven assets such as gold and other precious metals as investors respond to geopolitical stress and inflation risks.
ETF flows show early institutional demand returning
Spot Ethereum ETFs had seen outflows over the previous two months, leaving the market exposed to sharper swings. That trend has improved this month. The report says these products have posted total net inflows of $302.8 million so far, a sign that institutional buyers are stepping back in at lower price levels.
That recovery in flows has not yet been matched by strong momentum on the chart. The setup looks constructive, but the market is still waiting for confirmation. Price action remains tied to whether Ethereum can reclaim and hold above a resistance zone traders have been watching closely.
$2,400 neckline defines the breakout level
On the daily chart, Ethereum has been building a large cup-and-handle formation since early February. The rounded base reflects a stabilization phase after an extended decline, while the handle marks a modest pullback that can represent a final shakeout before a breakout attempt.
The neckline sits near $2,400, which also acts as a psychological resistance level. If ETH breaks above that area decisively, the article says the chart target would extend toward $3,000. That projection is derived by adding the depth of the cup to the breakout point where the pattern is confirmed.
Momentum still favors bears while $2,000 holds as support
Momentum indicators were still weak at press time. The MACD lines were sloping downward, and the Relative Strength Index stood at 40.85. That reading is slightly below neutral, though it has started to flatten, which may indicate that selling pressure is easing.
For now, the market has two clear levels to monitor. On the upside, $2,400 remains the immediate barrier after Ethereum failed to clear it during Tuesday’s broader market bounce. On the downside, $2,000 is the critical support zone. If that level fails, the article warns that ETH could slide back toward its yearly lows. The source also states that the material is for educational purposes and does not constitute investment advice.