Ethereum Price Drops After Bullish Attempt — Support Area Under Pressure

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Ethereum (ETH) has once again entered a period of consolidation after a failed bullish breakout, with price action signaling growing uncertainty in the short term. After testing the $2,520 resistance zone, Ethereum reversed sharply, dropping below key support levels and putting immediate bullish sentiment under pressure. As of the latest data, ETH is trading under $2,450 and struggling to reclaim momentum, raising concerns about whether the recent dip could deepen.

This article breaks down the current technical landscape for Ethereum, analyzes key support and resistance zones, evaluates market indicators, and explores potential scenarios for the coming days — all while identifying strategic levels traders should monitor closely.

Ethereum Pulls Back From Key Resistance

Ethereum initiated a fresh decline from the $2,520 resistance area, marking the end of a short-lived bullish attempt. The drop pushed prices below both the $2,500 and $2,450 psychological levels, pulling ETH into a bearish short-term structure.

👉 Discover how market sentiment shifts can impact Ethereum’s next move.

The breakdown was confirmed on the hourly chart (ETH/USD, data via Kraken), where price breached a critical bullish trend line that had provided support near $2,450. This technical breakdown signaled weakening buyer conviction and opened the door for further downside pressure.

The sell-off extended below the $2,400 mark, with a notable intraday low formed at $2,373. However, a partial recovery followed, allowing Ethereum to reclaim some ground. Price has since stabilized slightly above the $2,370 level, currently hovering below $2,450 and the 100-hourly Simple Moving Average (SMA), which now acts as dynamic resistance.

Technical Recovery in Progress?

Despite the bearish momentum, there are early signs of stabilization. Ethereum has climbed above the 23.6% Fibonacci retracement level of the downward move from the $2,523 swing high to the $2,373 low. While this suggests some buying interest has returned, the rally remains constrained.

On the upside, immediate resistance is seen near $2,420**, followed by a more significant barrier at **$2,450 — a level that coincides with the 50% Fib retracement of the recent decline. Clearing this zone would be a positive signal and could pave the way toward retesting $2,465, the first major resistance level.

A decisive move above $2,465 could reignite bullish momentum and potentially push Ethereum back toward the **$2,520 resistance — the origin of the prior reversal. Should buyers maintain control beyond that point, the path may open toward $2,550** and eventually **$2,650** in the near term.

However, such an outcome hinges on sustained buying pressure and a stable hold above key support zones.

Downside Risks: What If Support Breaks?

Failure to reclaim $2,450 could lead to renewed selling pressure. In such a scenario, initial support would come in around **$2,375, followed by a more critical zone near $2,350** — a level widely watched by traders as a make-or-break threshold for near-term sentiment.

👉 Learn how to identify critical support zones before major market moves.

A confirmed break below $2,350 could accelerate losses, potentially driving price toward **$2,280 — an area that previously acted as support during earlier consolidation phases. Further downside would expose $2,220**, with the next major support resting at **$2,150**.

Such a drop would not only erase recent gains but could also trigger broader market concern, especially if Bitcoin shows similar weakness.

Key Technical Indicators Signal Caution

Market indicators across the hourly timeframe reflect weakening momentum and cautious sentiment:

These readings align with price action and reinforce the idea that Ethereum is in a consolidation or correction phase rather than a new bullish trend.

FAQ: Understanding Ethereum’s Current Price Action

Q: Why did Ethereum drop after reaching $2,520?
A: The decline followed a rejection at a strong resistance level and a breakdown below a key trend line near $2,450. Technical indicators also showed weakening momentum, contributing to profit-taking and short-term selling.

Q: What is the most important support level for Ethereum right now?
A: The **$2,350** zone is currently the most critical support level. A sustained hold above it improves chances for recovery; a break below increases risk of further downside toward $2,280 or lower.

Q: Can Ethereum recover and reach $2,600 soon?
A: Yes, but only if it first clears $2,450 and then decisively breaks above $2,465. Sustained volume-backed buying would be required to target $2,550 and beyond.

Q: How does Bitcoin’s price affect Ethereum’s movement?
A: Ethereum often follows Bitcoin’s lead due to their high correlation. If BTC stabilizes or rallies, ETH is more likely to recover. Conversely, BTC weakness typically amplifies ETH losses.

Q: What role do moving averages play in ETH’s current trend?
A: The 100-hourly SMA is currently acting as dynamic resistance. Until Ethereum closes above this level with conviction, the short-term bias remains bearish.

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Final Outlook: Stability Before Strength

For now, Ethereum remains in a transitional phase. The failed breakout at $2,520 has shifted focus to support preservation near $2,350. While recovery attempts are underway, true bullish confirmation requires reclaiming both $2,450 and the 100-hourly SMA.

Traders should monitor volume patterns, Bitcoin’s trajectory, and broader market sentiment to gauge whether the current pullback is a healthy correction or the start of a deeper decline.

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Regardless of direction, key levels remain clear: defend $2,350 for hope; lose it for risk. In volatile markets like crypto, preparation beats prediction — and informed decisions begin with precise analysis.