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Ethereum price has dropped 3.16% in the last 24 hours to about $2,330.60. The decline left the asset under pressure as traders watched whether buyers could defend support near $2,320.
The move followed a fresh bearish divergence on the ETH chart and a continued slide in the ETH/BTC ratio. At the same time, the market stayed cautious after the KelpDAO exploit, while Bitcoin attracted a larger share of capital.
Ethereum is flashing a bearish divergence for the second time in five weeks. On April 22, ETH price pushed to a higher high, but the Relative Strength Index failed to match its earlier peak. The setup showed fading momentum even as price tried to move higher.
A similar signal appeared before Ethereum dropped 8.88% into April 19. This time, the pattern has returned while traders also watch a broader shift in market positioning. The signal does not confirm a deeper drop on its own, but it keeps short-term pressure in place while ETH remains below resistance.
Ethereum has also weakened against Bitcoin. The ETH/BTC pair has fallen about 5.5% over the past week, and the chart continues to show a bearish setup. A bear flag pattern has formed since February, which points to the risk of another move lower if the pair breaks below its lower trend line.
If the pattern confirms, ETH/BTC could fall toward 0.026 BTC in May. Such a move would extend Ethereum’s underperformance against Bitcoin and reflect the current shift by traders toward larger and more defensive assets.
Ethereum now faces immediate resistance near $2,377. The level marks a Fibonacci retracement barrier and remains the first area bulls need to reclaim to weaken the current bearish setup.
If ETH closes above $2,377, the next upside target stands near $2,455. A move through that area could then open the way toward $2,517, followed by higher resistance zones at $2,580 and $2,783.
On the downside, support sits near $2,320, where the bullish trend line and hourly simple moving average meet. If the level fails, Ethereum may fall back toward the $2,250 to $2,285 area.
The lower zone remains important because a large amount of ETH last moved there on-chain. Data shows that close to 716,028 ETH sits between $2,231 and $2,250 in cost basis terms. If the cluster breaks, the next main demand area stands between $2,067 and $2,085, where about 1.4 million ETH is concentrated.
Ethereum’s longer-term supply picture remains tight despite the latest drop. The network’s staking ratio reached a record 32.33% on April 21, with about 39 million ETH locked across more than 816,000 validators.
More than one-third of Ethereum’s circulating supply is now staked. As more ETH gets locked, less remains available for active trading, which can reduce sell pressure over time.
Whale activity has also shifted since the previous correction. Whale holdings rose from 123.75 million ETH on April 19 to 123.91 million ETH by April 22. The increase showed accumulation rather than the reserve decline seen during the earlier sell-off. Traders remain cautious because whale support can change quickly.
The KelpDAO exploit added another layer of pressure to Ethereum sentiment. Reports linked the incident to the loss of about $290 million in rsETH, which triggered liquidations and renewed concern around risks in DeFi.
The development mattered for Ethereum because the network remains closely linked to DeFi activity. When a major exploit affects confidence in that sector, traders often respond by reducing exposure to ETH and related assets.
The broader market also turned more defensive during the period. Bitcoin dominance rose to 60.04%, while the Altcoin Season Index fell 8.57% in 24 hours to 32. The shift showed capital moving out of altcoins and into Bitcoin.
Also Read: Ethereum Breakout: Is Altcoin Season About to Begin?
