Ethereum’s price is facing rejection after failing to sustainably break through the $2,600 level. After briefly hitting a local high of $2,614, Ethereum has since retreated and is struggling to hold the $2,500 support zone.
The bulls attempted to extend the previous rally but faced substantial resistance around $2,600, similar to what itcoin">Bitcoin encountered. Prices have now fallen back below the short-term moving average lines, suggesting bullish momentum is slowing in the near term.
Technically, Ethereum needs to regain strength and push back above the hourly resistance of around $2,540 for the bull case to remain intact. However, repeated rejections near $2,600 signal that bearish sentiments may be creeping back in. If the price fails to get above $2,540 soon, it risks breaking down below $2,500 which would open the door for a more significant correction.
The key inflection point sits at $2,500 – a meaningful support zone for Ethereum over recent days. But if broken, the technical setup deteriorates quickly, with little major support seen until around $2,400 and $2,350. Ethereum may enter free-fall if the critical support at $2,500 is not maintained by the bulls in the coming days.
Both the hourly MACD and RSI indicators are also pointing to building downside momentum, adding credence to the bear case. Time is running out for the bulls to respond and defend $2,500. Otherwise, Ethereum risks a protracted pullback, especially if the overall crypto markets lose momentum. The latest price action underscores vulnerabilities in the recent rally, which could lead to more gut-wrenching volatility in the near term.
