Why is Ethereum price declining today?

Ethereum is experiencing downward momentum on intraday charts during the London session, trading at 2643.45 after retreating from its daily high of 2696.26. The shift in short-term momentum is highlighted by the H1 EMA20 falling below the EMA50, although the broader daily trend remains upward.

Could rising bearish positions trigger an Ethereum short squeeze?

According to media coverage by Blockonomi, there is speculation that a sharp rise in bearish positions could set up a potential short squeeze. However, technical indicators remain mixed, with the price currently testing the S2 support level at 2639.23.

What key technical support levels should ETH/USD traders monitor now?

Key support levels to watch include the nearest pivot support S2 at 2639.23, followed by S3 at 2609.45 and the round psychological number at 2600. Additionally, the low of the 5-day range sits at 2626.94.

Ethereum (ETH/USD) Technical Analysis: Support Tested

Daily outlook Neutral bias Sep 28, 2026, 07:27 UTC

Marcus ReedTechnical Analysis Lead · ForexR analyst

Ethereum faces downward pressure during the London session, retreating toward key support at 2639.23 as conflicting daily and hourly trends dictate a neutral bias.

Dark sculpted sphere outlined by subtle coloured light

Price2,643.45

Day change-1.64%

Day range2,635.24 - 2,696.26

ATR (14)94.60

Resistance	Level	Support	Level
R3	2,772.29	S1	2,663.73
R2	2,747.79	S2	2,639.23
R1	2,718.01	S3	2,609.45
Previous day high	2,723.29	Previous day low	2,669.01
20-day high	2,807.10	20-day low	2,356.82
Daily pivot 2,693.51. Data as of 2026-09-28 07:26 UTC; price from a live feed, levels computed from the previous completed daily bar.

Ethereum (ETH/USD) 1-hour chart with the daily pivot at 2,693.51, R1 2,718.01, R2 2,747.79, S1 2,663.73, S2 2,639.23 and the bullish and bearish scenario paths — Ethereum (ETH/USD), 1-hour candles with the daily pivot levels, the range between nearest support and resistance, and both scenario paths. Data as of 2026-09-28 07:26 UTC.

Ethereum Pulls Back After Testing Daily Open

Ethereum (ETH/USD) is currently trading at 2643.45, representing a decline of 1.64% on the day with a loss of 44.14. After starting the day at the open of 2687.59, the cryptocurrency touched an intraday high of 2696.26 before dropping to a low of 2635.24. This daily range of 61.02 represents 65% of its average true range (ATR14), which currently stands at 94.6. This pullback follows a consolidation session yesterday, where the price settled at yesterday's close of 2688.23 after establishing a daily range of 54.28. To monitor real-time movements and visual indicators, traders can check the live Ethereum (ETH/USD) rate and charts.

Trend and Momentum Disagree Across Timeframes

A comprehensive Ethereum (ETH/USD) technical analysis reveals a split between longer-term structure and intraday momentum. On the daily chart, the trend remains up, supported by the price trading above the 200-day exponential moving average (EMA200) at 2254.02. The daily EMA20 sits at 2596.16 and the EMA50 stands at 2415.85, while the daily RSI14 reads 63, indicating moderate upward momentum. However, shorter-term timeframes present immediate challenges; the H4 trend is currently mixed, with its EMA20 at 2684.54 and EMA50 at 2666.64. Meanwhile, the H1 chart shows a down state, characterized by an EMA20 of 2670.53 trading below an EMA50 of 2682.17. Because these various timeframes do not align, we maintain a neutral bias today.

Crucial Support and Resistance Levels to Watch

Under daily pivot points, the nearest resistance level is S1 at 2663.73, located 20.28 above the current price, while the nearest support level is S2 at 2639.23, situated 4.22 below. The central daily pivot (P) lies at 2693.51. Below the current price, further support structures include S3 at 2609.45 and the round level at 2600. On the resistance side, levels are established at R1 2718.01, R2 2747.79, and R3 2772.29.

Yesterday's high of 2723.29 and yesterday's low of 2669.01 offer immediate structural limits. Over a broader horizon, the 5-day range is bounded by a high of 2788.35 and a low of 2626.94, while the 20-day range spans a high of 2807.1 and a low of 2356.82. The psychological round level above current trading stands at 2650. To calculate alternative support and resistance scenarios, traders can utilize our pivot point calculator.

Bullish and Bearish Trading Scenarios

Two distinct conditional pathways exist based on these technical levels. A bullish scenario could develop if the price manages a break above the trigger R1 at 2718.01. This move would open the way to target R2 at 2747.79, offering a potential range of 29.78. A move back below the daily pivot at 2693.51 would invalidate this positive outlook.

Conversely, a bearish scenario would be activated by a break below the trigger S2 at 2639.23. This breakdown would target support S3 at 2609.45, with a potential movement of 29.78. An upward move above the daily pivot at 2693.51 would invalidate this bearish view.

External Drivers and Market Sentiment

News sentiment surrounding the cryptocurrency is currently marked as bearish. According to data from an independent provider, the opportunity read on ETH/USD shifted from -13 to -37 in a 24-hour window, with the final opportunity score registered at -42. Recent headlines have highlighted various narratives: Blockonomi reported on a possible short squeeze stemming from surging bearish positions, while Blockchain News raised questions about whether being capped below $2,707 acts as a coiled spring or a bull trap. Other media coverage, including reports by Crypto news and Tokenpost, focused on price predictions, long-term roadmaps, and decentralized network developments.

Looking ahead to the macroeconomic calendar, tomorrow's schedule brings key US economic events that could influence broad market risk sentiment. On Tuesday, the Fed's Musalem is scheduled to speak at 11:30 UTC, followed by the US Housing Price Index (MoM) release at 13:00 UTC, which carries an estimate of 0.1 compared to the previous reading of 0.

Bottom Line

Ethereum enters the London session trading near critical near-term boundaries, with the price testing S2 support at 2639.23. The disagreement between the long-term upward trend on the daily chart and the downward intraday momentum on the H1 chart calls for patience. Watch the daily pivot at 2693.51 as the central level that will likely dictate whether the current correction deepens or reverses.