Ethereum maintained its hold on the $2,200 support level on Friday, even after an 8.5% decline on November 5 wiped out gains following the US midterm elections. Ether traded near $2,236 as analysts shifted focus to the $2,170-$2,156 range, which is seen as the next significant support zone. The 200-day simple moving average currently stands at $2,156, reinforcing the technical importance of this area. Meanwhile, traders remained cautious ahead of the latest US payrolls report, which could influence broader market sentiment.
Post-election drop and ETF flows
Ether briefly surpassed $2,400 in the aftermath of the US midterm elections but quickly reversed course alongside a technology stock selloff. This broader risk-off sentiment extended to cryptocurrencies, accelerating the pullback in ETH.
According to CoinGecko data, ETH traded at $2,236.03, down nearly 5% over the past 24 hours. Despite this, the seven-day change reflected a mere 0.11% gain, highlighting market indecision. The 24-hour trading volume reached approximately $17.45 billion, reflecting continued active trading during the correction.
Institutional participation showed signs of weakness. IG reported that US spot Ether exchange-traded funds (ETFs) experienced net outflows, totaling $427.9 million over the last five trading sessions. This shift suggested that hopes for renewed institutional demand may be fading.
Mini dictionary: Spot Ether ETF – An exchange-traded fund that directly holds Ethereum, allowing institutional and retail investors to gain regulated exposure to ETH’s price movements without holding the underlying cryptocurrency.
Technical support levels and risk zones
IG’s Chief Technical Analyst Axel Rudolph identified the $2,170-$2,156 band as an essential technical zone. This aligns with the 200-day simple moving average, which marks a significant indicator used by traders to analyze long-term trends.
Independent market analyst Daan Crypto Trades pointed out that ETH coincides with both the 0.618 Fibonacci retracement level and the daily 200-day moving average, reinforcing the importance of this support region. The 0.618 Fibonacci ratio is commonly used by technical analysts to estimate the extent of a potential price correction.
He emphasized that a clear move below the $2,150 level could trigger further selling and potentially erase much of the previous breakout. Notable support levels remain at $2,251, $2,205, and $2,107, while deeper declines could open the path to $1,972 or even $1,828 if bearish momentum persists.
| Support Levels | Resistance Levels |
|---|---|
| $2,251 | $2,344–$2,348 |
| $2,205 | $2,355 |
| $2,170–$2,156 (200-day SMA) | $2,405 |
| $2,107 | $2,548, $2,637, $2,782, $3,076 |
| $1,972, $1,828 | – |
IG outlined that a daily close below $2,156 would likely signal the conclusion of the late-summer recovery trend, putting the psychologically important $2,000 area into focus for traders.
Resistance barriers and momentum indicators
Ethereum has fallen below its 20-, 50- and 100-day exponential moving averages, with these levels clustering between $2,345 and $2,405. This range is currently serving as a cap for any recovery attempts. The first significant resistance lies at the 100- and 20-day EMAs between $2,344 and $2,348, followed by the horizontal barrier at $2,355 and the 50-day EMA at $2,405. Additional stronger resistance levels are found at $2,548, $2,637, $2,782, and $3,076.
Momentum indicators continue to suggest a bearish bias. The Relative Strength Index (RSI) hovers near 40, and the Stochastic indicator is close to 28, indicating subdued bullish momentum at present.
IG emphasized that a daily close below $2,156 would identify the end of Ethereum’s recovery structure, increasing the risk of testing $2,000 as the next psychological threshold.
Daan Crypto Trades noted that Ethereum would need to decisively move above $2,350 to restore bullish momentum, suggesting that traders approach the market on a level-by-level basis to navigate the current volatility.
Market participants now await the US payrolls report, as ETH’s daily close relative to the $2,156 level could determine the near-term direction. A clear move above $2,350 would challenge overhead resistance, while a drop below $2,156 would shift attention toward the $2,000 mark.
