Ethereum’s rebound from $2,400 enters sixth day despite ETF outflows

Ethereum trades at $2,450 today

• The $2,400 area has repeatedly provided a springboard for Ethereum over the past week.
• Just above the average on-chain cost basis of $2,311, investors are likely stepping in with purchases to defend support.
• Despite repeated tests in recent days, ETH has not closed beneath the confluence of the 100-day EMA and the $2,355 horizontal level.

The $2,400 area again supported Ethereum (ETH) on Tuesday, prompting a rebound for the sixth consecutive day. Its on-chain cost basis and important moving averages have continued to provide key support.

Despite macroeconomic pressures over the past week, the leading altcoin has found robust support below $2,400. Each dip beneath that threshold has repeatedly drawn buyers seeking to defend the price.

This support is not confined to recent days. During ETH's three-week consolidation from late August to mid-September, the area below $2,400 also provided a key floor.

Nearby on-chain and technical support offer two main explanations for the persistent buying around this level.

ETH buyers defend the on-chain cost basis

At $2,311, Ethereum's Realized Price represents its average on-chain cost basis. A fall beneath this measure leaves the average holder nursing a loss.

Historically, this has encouraged investors to defend the level, particularly when momentum is subdued and prices are falling, as seen over the past week. Even with persistent selling across spot and futures markets, this on-chain support has played a crucial role.

Monday brought $103.2 million in net outflows from US spot ETH ETFs, according to SoSoValue data. That took the number of sessions with net outflows to 14 out of the last 15 trading days.

According to Coinglass data, ETH long positions accounted for the largest share of crypto liquidations last week, leading on most days when prices fell. Ethereum has nevertheless recovered over the past two days. Liquidations in Ethereum futures totalled $100.4 million in the past 24 hours at the time of writing, with short positions accounting for $64.7 million.

Support below $2,400 remains intact, but a prolonged fall beneath the realised price could intensify selling as investors seek to limit their losses.

Ethereum technical outlook: ETH defends the 100-day EMA and $2,355 support

A key technical support zone lies at the confluence of the 100-day Exponential Moving Average at $2,362 and the $2,355 horizontal level. This area has helped lift ETH back above $2,400, with the leading altcoin unable to close beneath it despite several tests in recent days. Should a daily close break below the zone, attention could turn to support at $2,204.

Recovery attempts towards resistance at $2,548 face a barrier from the 20- and 50-day EMAs, at $2,500 and $2,482 respectively. Moving back above these short-term averages could restore an upward bias and trigger a climb towards resistance at $2,781.

Although both the 14-day Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have risen, they remain below their neutral levels. This suggests that bearish control is weakening.