Ethereum’s Red Streak Hits 3 Months: Will $2,600 Decide Its Fate?

Key Insights:

• Ethereum struggles at $2,600 as capital inflows plunge nearly 50% in 10 days.
• Analysts warn losing $2,600 could cancel the altseason and trigger more losses.
• Bullish RSI signal hints at a possible ETH breakout despite market fears.

Ethereum (ETH) price faced its third consecutive month in the red, raising concerns about the asset’s trajectory. The last time ETH experienced more than three months of losses was in 2018.

3 months of red for #Ethereum! 👀

The last time $ETH had more than 3 months of red was in 2018!

Where is #ETH heading? 📈📉 pic.twitter.com/9FHLAdSvaQ

— Rand Group (@randgroup) February 24, 2025

It was a period that saw a steep market downturn. The decline comes as capital inflows into the crypto market have dropped nearly 50% over the past 10 days. It plunged from $52 Billion to $26.5 Billion.

Ethereum Price Battles $2,600 as Capital Inflows Collapse

Ethereum struggles, hovering in the mid-$2,000 range as uncertainty grips the market. At press time, Ethereum price traded just below $2,700, with Bulls fighting to reclaim momentum. However, a deeper price correction remains on the table, especially with dwindling capital inflows.

Ali Martinez didn’t stop at inflows. In a recent X post, he flagged $2,600 as Ethereum’s make-or-break level. “Lose this support, and altseason is canceled,” he warned.

With ETH teetering so close to this critical price point, the stakes couldn’t be higher. The altcoin market, often tethered to Ethereum’s fortunes, is holding its breath.

Meanwhile, seasoned analyst Rekt Capital chimed in with a sobering take. He stated that altcoins struggle to break key resistance levels and are trapped in a triangular market structure.

A daily close above these hurdles is essential for a trend reversal. However, will ETH lead the charge or drag everything down?

Bybit Hack Shakes Ethereum, But ETH Holds Strong

Ethereum’s resilience amid chaos has also caught the market’s attention. The recent Bybit hack saw hackers steal over $1.4 Billion worth of digital assets, largely in ETH. However, it didn’t trigger a sharp decline in Ethereum price.

$ETH Only down ~1% in relative terms to $BTC after the hack.

Seeing yesterday's big stock market sell off, I think it's safe to assume that the market would have sold off regardless of the hack.

To see ETH at basically the same level as before a $1B+ hack is pretty interesting.… pic.twitter.com/QjgvMtD5Bg

— Daan Crypto Trades (@DaanCrypto) February 22, 2025

Crypto analyst Daan Crypto Trades pointed out that ETH’s ability to maintain its price levels despite the hack is intriguing. He suggested that an entity could buy back stolen ETH, preventing a major price drop.

Another analyst, Ted, echoed these sentiments, pointing out that ETH has already rebounded 35% from its recent low despite the massive theft. This suggests that buying pressure remains strong even in the face of negative news.

Bullish RSI Signal—Can Ethereum Defy the Bears?

While market sentiment leans bearish, a key technical indicator is flashing a potential reversal signal. The Weekly Stochastic RSI recently confirmed a bullish cross, a pattern that has historically preceded major ETH price surges.

The last time ETH saw this setup, the price experienced a strong upside move. Traders are now watching closely to see if history repeats itself.

Adding to the bullish case, crypto trader Merlijn The Trader offered a ray of hope. Sharing a three-week chart, they argued ETH is poised to burst out of a symmetrical triangle.

It is a setup that could launch “its biggest bull run yet.” With short positions ballooning 500% in three months, the bears are doubling down. Meanwhile, if Merlijn’s call is on the money, those shorts might soon scramble to cover.

However, Ethereum price still faces stiff resistance at the $3,000 level. Breaking above this barrier remains a critical challenge for bulls.

Ethereum’s struggles could also have broader implications for the altcoin market. Crypto analyst Rekt Capital highlighted a key altcoin market cap chart. It showed that altcoins struggled to break above critical resistance.

ETH may manage to hold $2,600 and capitalize on bullish technical signals. If this happens, a breakout above $3,000 could be within reach.

However, the collapse in capital inflows, combined with macroeconomic uncertainty, poses serious risks to its short-term trajectory.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.