Ethereum bounces off $2,400 for a sixth day despite ETF outflows

Ethereum price today: $2,450

• Ethereum has consistently bounced near the $2,400 region over the past week.
• Investors are likely initiating buying pressure to defend the level just above the average on-chain cost basis at $2,311.
• ETH has failed to close below the 100-day EMA and $2,355 horizontal level overlap despite several attempts in the past few days.

Ethereum (ETH) bounced again near the $2,400 level on Tuesday, the sixth straight day, as its on-chain cost basis and key moving averages have stood as key support levels.

The sub-$2,400 level has proven to be a strong support for the top altcoin over the past week amid macro pressures. Buyers have repeatedly stepped in to defend prices whenever it falls below the level.

The past few days aren't the first time the level acted as support. When ETH consolidated in the three weeks spanning late August to mid-September, the sub-$2,400 level also proved to be key support.

Two primary reasons for the consistent buying around that level are the on-chain and technical support near it.

Buyers are defending ETH's on-chain cost basis

Ethereum's Realized Price, or average on-chain cost basis, sits at $2,311. Below the realized price, the average holder is at a loss.

As a result, investors have historically defended the level, especially during periods when momentum is weak and prices are declining, as evident over the past week. The on-chain support proved critical despite sustained selling in both spot and futures markets.

US spot ETH ETFs recorded $103.2 million in net outflows on Monday, marking 14 negative days in the last 15 trading days, per SoSoValue data.

ETH longs also spearheaded most crypto liquidations last week, dominating most downside days, according to Coinglass data. However, it has rebounded over the past two days. At the time of writing, Ethereum futures liquidation reached $100.4 million over the past 24 hours, led by $64.7 million in short liquidations.

While the sub-$2,400 level is holding firm, a sustained decline below the realized price could fuel selling pressure from investors looking to cut losses.

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

On the technical side, the 100-day Exponential Moving Average at $2,362 and $2,355 horizontal level overlap are key supports that have helped ETH push back above $2,400. The top altcoin has failed to close below the overlap despite several attempts over the past few days. A daily close below could bring the $2,204 support into focus.

On the topside, the 20- and 50-day EMAs at $2,500 and $2,482 are limiting bounce attempts toward the $2,548 resistance. A reclaim of the short-term EMAs could shift bias back to the upside and spark a rise to test the $2,781 resistance.

Momentum indicators, the 14-day Relative Strength Index (RSI) and Stochastic Oscillator (Stoch), moved upward but remained below their neutral levels, indicating fading bearish dominance.