Ethereum Faces Short-Term Downside Risks Breaking Below $2,500

The Ethereum price has encountered difficulty surmounting the $2,680 level and has entered a decline. Currently, ETH is consolidating its losses and faces potential further declines if it drops below $2,500. The recent downward movement started after ETH was unable to push beyond $2,680, leading to a decline below $2,620 and $2,600. The price then fell below a bullish trend line supported at $2,540, testing the $2,450 zone before initiating consolidation. Although there was a modest rebound above the 23.6% Fibonacci retracement of the recent drop, ETH remains below $2,550 and the 100-hour Simple Moving Average. Resistance levels exist at approximately $2,540 and $2,565, with a significant resistance close to $2,620. Surpassing $2,620 could push ETH toward $2,680, and further upward movement might target the $2,800 or even $2,880 zones. On the downside, failure to break above $2,540 could lead ETH to retest support levels at $2,500, $2,450, and potentially as low as $2,320 or $2,240. The primary support level is identified at $2,450. Technical indicators suggest weakening momentum, with the MACD in the bearish zone and RSI below 50, indicating a cautious outlook. The outlook suggests that Ethereum is in a tentative phase, with resistance delineating the current upper bounds and support offering potential downside protection. The price action will be critical in the coming sessions to determine if ETH can recover above key resistance levels or if it will continue its decline.