Ethereum is struggling in the slaughterhouse. Why is this price level so dangerous?

Just look at the on-chain data. ETH spot ETF continues to see net outflows, indicating market expectations for the regulatory environment are weakening; the total value locked (TVL) in the DeFi ecosystem is shrinking, showing user participation is declining. Gas fees have long been at the floor, and staking yields are also falling, significantly weakening the attractiveness of the entire Ethereum ecosystem. Weak demand has become a certainty.

What about the technical side? It’s even more concerning. In the 2850-2900 range, there are accumulated short-term liquidation orders worth $66.16 million — this is no coincidence, but a "slaughterhouse" triggered every time there’s a rebound. Each time the price bounces here, it triggers a wave of forced liquidations and sell-offs, creating an insurmountable selling pressure. The liquidation orders around 2700-2750 are sparse, which means once the price falls below the 2780 support line, the decline will be relentless. 2650 becomes the next key support level.

The signals on the four-hour chart are not optimistic. A triple divergence top has appeared — the price is making new highs, but indicators like MACD and RSI are showing weakness. After the MACD death cross, the green bars are still lengthening, indicating downward momentum has not exhausted; RSI, although oversold, has not formed a bullish divergence, suggesting bottom-fishing funds are waiting for lower prices. The Bollinger Bands are opening downward, with the price hugging the lower band, highlighting a clear downtrend.

The most telling factor is volume: volume increases significantly during declines, but trading volume during rebounds is sparse. This volume-price mismatch reveals a severe lack of follow-through buying, and the market lacks upward momentum. All moving averages are in a bearish alignment, and the previous support at 2900 has now become a resistance level.

So, how to respond?

For spot holders, if the price falls below 2780, it’s advisable to cut losses and wait; consider gradually lightening positions around 2650. Contract traders can attempt short positions during rebounds in the 2850-2900 range, with a stop-loss above 2950. Only when the price breaks through 2950 with increased volume and stabilizes can a bottom possibly be confirmed.

Currently, Ethereum (ETH) is priced at $2.94K, down 1.65% in 24 hours, at a critical turning point. 2850 is the life-and-death line for bulls and bears. Until the macro environment shows clear improvement, any rebound may just be a window for reducing positions. In extreme conditions, preserving capital is always more important than blindly bottom-fishing.