Ethereum Claws Back to $2,493 but Supertrend Flips Bearish

Ethereum has clawed its way back to roughly $2,493 after a quick slide toward $2,400 on Binance. The move came fast enough to catch some dip buyers off guard. Still, the daily Supertrend indicator has flipped bearish, and the four-hour chart keeps showing negative money flow.

Why the Supertrend Flip Matters

The Supertrend turning red on the daily chart is not a minor detail. It marks the first sustained bearish signal since the late-September bounce. Price has spent the past week chopping between $2,380 and $2,550, so the indicator shift lines up with the range top failing to break.

Traders who follow this tool know it tends to stay in one direction until volatility expands enough to flip it again. A close back above $2,550 would be required to reverse the signal. Until then the path of least resistance tilts lower.

Four-Hour Money Flow Still Draining

Even the short-term recovery has not repaired the 4-hour picture. Chaikin money flow remains below zero, showing sellers have been more aggressive on rallies than buyers have been on dips. That mismatch usually shows up before larger moves lower, though it can linger for days.

No surprise there. Spot volumes have thinned since the last Fed meeting, leaving the pair more sensitive to order flow from leveraged accounts. A single large long liquidation could push ETH through the $2,450 support zone quickly.

How This Compares With Past ETH Corrections

Similar setups appeared in March 2024 and again in late July. In both cases price spent several sessions testing the prior swing high before rolling over. The Supertrend flip preceded each decline by one to three days. History does not repeat exactly, but the pattern gives context for what a confirmed break below $2,400 might look like.

Broader risk markets have also turned quieter. Bitcoin dominance has crept higher while altcoin outperformance stalled. Ethereum often feels those shifts first because of its larger derivatives open interest.

Questions That Remain Open

Will spot Ethereum ETF flows pick up enough to offset the technical damage? Can the $2,500 handle act as a magnet long enough for momentum to rebuild? Or does the bearish Supertrend simply confirm that the September rally has run its course?

Answers will likely come from the next daily close and how volume behaves on any test of $2,450. A rejection there keeps the door open for another run at $2,550. Acceptance below it opens the path toward the August low near $2,300.

Watch your position sizing here. This is the kind of move that catches leveraged traders off guard when the indicator alignment and order flow line up the same way.