The post Ethereum Faces 200-Day EMA Rejection Amid $7B Liquidation Cascade appeared on BitcoinEthereumNews.com.

TLDR: ETH failed three times at the 200-day EMA, confirming weakening momentum and sustained selling pressure.  Over $1.3B in long liquidations shows derivatives activity dominated price action, not spot demand.  The $2.7K level flipped from support to resistance, redefining near-term market structure.  Focus now shifts to $2.3K and $1.8K as the next zones of potential buyer interest.   ETH 200-day EMA rejection shows repeated failures near resistance aligned with a wave of forced liquidations. Price action now reflects leverage-driven volatility instead of organic trend recovery. Distribution Behavior Emerges at Key Technical Resistance ETH price moved higher, yet the advance lacked sustained demand. Instead, it appeared driven by short covering into a known supply zone. Momentum weakened with every approach to the moving average. Candle bodies narrowed, and upper wicks became more frequent. At the same time, volume failed to expand.  Furthermore, the repeated rejection pattern reinforced technical exhaustion. Three attempts at the same resistance level produced lower follow-through each time. This suggested that sellers maintained control despite temporary upside pressure. On social media, several analysts shared charts showing price stalling exactly at the 200-day EMA. Therefore, upside strength functioned mainly as liquidity for larger participants. If you’re buying every $ETH pump into $2.7K after this 200day EMA rejection, you’re exit liquidity. You can ignore 1 rejection at the 200-day EMA, but you can’t ignore 3. That $ETH 200-day EMA was the big make or break level, and we just got a clean rejection off it (red… https://t.co/hnTVoMBAq7 pic.twitter.com/otk7f6dUFL — Dami-Defi (@DamiDefi) February 8, 2026 Soon after, ETH slipped back below $2.7K. That level had served as short-term support during the rebound phase. Once breached, it transitioned into resistance, and market bias tilted downward. This pivot divided two narratives. Above $2.7K, traders could argue for base formation. Below it, the structure…

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Filed under: News - @ February 8, 2026 11:19 am