- Ethereum has dropped to around $2,507, testing the crucial $2,500 support zone after a sharp rejection from the $2,870 resistance area.
- Ethereum now faces increased bearish pressure, with technical indicators pointing to oversold conditions and the risk of further decline toward $2,440 or lower.
ETH Price Slides Sharply—Can the Bulls Hold the Line?
Ethereum is under serious pressure after a sharp drop from $2,870 to near $2,507, breaching key short-term support zones. With technical indicators flashing oversold signals, ETH now hovers at a critical demand area between $2,490 and $2,500—setting the stage for either a rebound or a deeper plunge.
Ethereum’s Rejection Signals Bearish Reversal
Ethereum’s recent rally hit a wall at the $2,846 mark—precisely where the 0.618 Fibonacci level converged with upper Bollinger Band resistance on the 4-hour chart. This rejection sparked a swift downturn, dragging the price below $2,740 and triggering cascading sell-offs. The breakdown of a rising wedge formation on lower timeframes confirmed the bearish shift.
Currently, ETH’s 30-minute RSI is at 29.48, deep in oversold territory, while the MACD remains bearish. Despite a modest bounce attempt, weak momentum suggests that without a solid reclaim of the $2,550–$2,580 zone, the next leg down could target $2,440–$2,460.
Why ETH Is Falling: A Perfect Storm of Technical Triggers
ETH’s recent sell-off wasn’t just about resistance rejection—it was a cocktail of bearish catalysts. The sharp volatility spike widened Bollinger Bands, while the breakdown below the 20/50/100 EMAs turned these moving averages into resistance. Meanwhile, bearish Ichimoku Cloud signals on shorter timeframes confirmed downward momentum.
Adding to the downside risk is the persistent rejection zone between $2,845–$2,875, a level that acted as resistance in both April and November 2024. Until ETH can break past this ceiling with strong buying volume, upside potential remains capped.
Ethereum Price Forecast: Make-or-Break Zone Ahead
If Ethereum holds above $2,500 and reclaims $2,600, the path to recovery opens up toward $2,674 and potentially $2,745. A breakout beyond $2,745 would shift momentum back to the bulls and target the long-standing $2,875 resistance.
However, a breakdown below $2,440 may trigger a larger correction, potentially dragging ETH down to $2,300 or even lower. With trend bias currently bearish, traders should watch the $2,500–$2,550 zone closely—it may define Ethereum’s next big move.
