Ethereum fell below $2,700 on September 23 after a rally toward $2,800 lost momentum, but the cryptocurrency remained above several longer-term moving averages on the four-hour chart. At 15:07 UTC, ETH traded near $2,675, down 2.84% for the session. The token had opened around $2,754, climbed to approximately $2,789 and then dropped as low as $2,648. The pullback followed a sharp recovery from roughly $2,400 in mid-September and came after two consecutive sessions of net inflows into U.S. spot Ethereum exchange-traded funds.
The latest reversal puts a number of short-term levels back into focus. Ethereum lost its four-hour 20-period simple moving average near $2,710, while the session low around $2,648 became the nearest downside reference. Even after the decline, however, ETH remained above its four-hour 50-, 100- and 200-period moving averages. That structure shows how far the recent rally had carried the asset before the rejection near $2,800.
Ethereum Rally Stalls Before a Break Above $2,800
The daily chart showed Ethereum trading near $2,675 when the market snapshot was taken. Earlier in the session, the price had reached about $2,789 before reversing lower. A nearby daily chart level at $2,809.68 remained above the latest high, leaving the market short of a clear break through the $2,800 area.
The move followed a recovery that began near $2,400 in the middle of September. Ethereum pushed through the former resistance area around $2,550 and continued higher until it approached $2,800. The rejection therefore came after a substantial advance rather than after a prolonged period of weakness.
The four-hour chart showed how quickly the sell-off developed. One candle with a high near $2,730 fell to roughly $2,648, taking ETH below its 20-period simple moving average at $2,709.81. That loss leaves $2,700 as the first level buyers would need to reclaim before attention can shift back toward the recent highs.
Despite losing the short-term average, Ethereum was still trading above the four-hour 50-period moving average at $2,586.27, the 100-period average at $2,540.49 and the 200-period average at $2,499.93. The distance between the current price and those longer-term averages highlights the strength of the prior advance, even though the latest session produced a meaningful setback.
ETF Inflows Remained Positive Before the Pullback
The rejection near $2,800 came after a steep rise, making recent gains one possible source of selling pressure. Price action alone, however, does not identify whether the decline was caused by profit-taking, new short positions or another factor. The available data show only that Ethereum reversed after reaching the upper end of its recent range.
U.S. spot Ethereum ETF flows had strengthened before the pullback. Farside Investors recorded $270 million in net inflows on September 21 and another $162.2 million on September 22. Together, the two sessions brought in $432.2 million.
Those figures show that demand through U.S.-listed spot products had improved before ETH turned lower. The next flow report will be important for showing whether ETF investors continued to buy while Ethereum retreated from the $2,800 area.
ETF flows and exchange trading measure different kinds of activity, so the earlier inflows do not establish whether buyers will defend the current price range. They confirm that demand was present in the two sessions leading into the reversal, but they do not determine what will happen after the decline.
The timing of the ETF inflows also matters when interpreting the pullback. The $270 million recorded on September 21 was followed by $162.2 million on September 22, meaning both sessions remained positive immediately before the September 23 decline. That sequence does not prove that ETF demand will continue during weakness, but it shows that regulated fund buying had not disappeared before Ethereum failed to hold its move toward $2,800. Because the next flow report had not yet been released in the supplied information, the reaction of ETF investors to the pullback remained unknown. Any assessment of support from those products therefore has to stop with the confirmed two-day total of $432.2 million. The market data provide evidence of recent demand, while the price chart separately shows that this demand was not sufficient to prevent a short-term rejection once Ethereum approached the upper end of its latest advance.
U.S. interest rates also remain part of the broader market backdrop. The Federal Reserve raised its target range by 25 basis points to 3.75% to 4.00% on September 16. That decision came before Ethereum’s latest rally and pullback. The price charts themselves do not establish a direct connection between the rate increase and the September 23 reversal.
A Break Below $2,648 Would Shift Attention Lower
Ethereum’s session low near $2,648 is the closest observed downside level. If the price falls below it, lower areas on CoinGlass’s three-day liquidation heatmap would move into focus, including zones around $2,650 and $2,630.
The heatmap also shows a concentration near $2,700, close to the level Ethereum lost during the decline. Liquidation bands indicate prices where leveraged positions may come under pressure if the market reaches them. They are not fixed targets, however, because the bands can change as traders open and close positions.
For a recovery, Ethereum would first need to move back above $2,700 and regain its short-term moving average near $2,710. That would restore the first level lost during the sell-off and could reopen the path toward the recent high.
Above that, the next levels would be the roughly $2,789 session high and the daily chart marker around $2,810. Holding above those areas would provide stronger evidence that buyers had absorbed the rejection near $2,800 and regained control of the short-term setup.
Daily Momentum Still Reflects the Earlier Advance
Although the latest daily candle was negative, broader momentum indicators still reflected the preceding rise. The MACD remained above its signal line, with a reading of 96.80 compared with 83.87. The histogram stayed positive at 12.94.
Aroon readings also remained tilted toward the prior upward move. Aroon Up stood at 85.71%, while Aroon Down was at 42.86%. These indicators show that the earlier rally still influenced the broader daily structure when the data were captured.
At the same time, those readings had not yet produced a sustained move above $2,800. The latest decline demonstrates that positive momentum indicators can coexist with a rejection at a nearby resistance area.
That makes the immediate price levels more important for the short-term setup. Ethereum can retain positive broader momentum while still needing to recover lost ground before the recent highs come back into play.
Trader Highlights $2,550 as a Larger Liquidity Cluster
Crypto trader Ted Pillows identified $2,550 as Ethereum’s largest liquidity cluster and said the token could revisit that level before making another move higher. His view points to a deeper pullback than the nearest liquidation zones around $2,650 and $2,630.
The $2,550 area also sits close to other technical references mentioned in the analysis. Ethereum’s four-hour 100-period moving average was at $2,540.49, while the daily chart’s 0.786 retracement level stood at $2,531.99.
Those nearby readings make the broader $2,532 to $2,550 area one to watch if the sell-off extends. Ethereum would first need to break below the September 23 low, however, before that deeper zone becomes the more immediate focus.
Pillows’s forecast is one trader’s view rather than a confirmed price path. The current market structure still places $2,648 and $2,710 ahead of the lower cluster in terms of immediate relevance.
$2,648 and $2,710 Define the Near-Term Range
For now, Ethereum’s short-term setup is framed by the session low near $2,648 and the lost moving-average zone around $2,710. Holding above the low would preserve the possibility of a recovery, while reclaiming $2,700 and the short-term average would strengthen that case.
If buyers manage to recover those levels, the recent high around $2,789 becomes the next test, followed by the marked daily level near $2,810. A move above those areas would provide clearer evidence that the rejection near $2,800 had been overcome.
If Ethereum instead breaks below $2,648, attention would shift toward the lower liquidation bands near $2,650 and $2,630. Continued weakness beyond those areas could then bring the $2,532 to $2,550 zone into focus.
The fact that ETH remains above its four-hour 50-, 100- and 200-period moving averages means the latest decline has not erased the broader recovery from mid-September. At the same time, the loss of the 20-period average shows that short-term momentum weakened after the unsuccessful attempt to move through $2,800.
Ethereum Balances Stronger Structure With Near-Term Weakness
Ethereum’s latest move presents a mixed technical picture. The token has retreated from an important resistance area and fallen below a short-term moving average, but it continues to trade above several longer-term averages. ETF demand was positive in the two sessions before the decline, while liquidation data show nearby areas where leveraged positions could face pressure.
The market therefore has clearly defined levels on both sides. Buyers first need to reclaim $2,700 and approximately $2,710. Beyond that, the recent high around $2,789 and the daily level near $2,810 become the next tests.
On the downside, $2,648 remains the nearest observed level. A break there would put lower liquidation bands into focus and could eventually expose the broader $2,532 to $2,550 area highlighted by both liquidity and moving-average readings.
For now, Ethereum has not confirmed either a renewed breakout or a deeper reversal. The rejection near $2,800 weakened the immediate setup, but the token remains above longer-term four-hour averages and daily momentum readings still reflect the earlier advance. The next move around $2,648 and $2,710 will determine whether the pullback remains contained or develops into a broader retracement.
