Ethereum Price Risks Drop Below $2,400 Amid Bearish Signals

Ethereum has experienced a fresh decline dropping below the $2,550 level, signaling bearish momentum. Currently, ETH trades just above $2,500 and the 100-hour Simple Moving Average, yet it has broken below a significant rising channel support at $2,610, indicating potential further downside. A low was reached at $2,394, and although the price is consolidating losses, key resistance levels around $2,460 and $2,540 remain critical. If ETH manages to break above $2,540, it could attempt resurgence towards $2,600 and potentially $2,650 or higher. Conversely, failure to surpass $2,500, with initial support near $2,400 and major supports at $2,380, $2,350, and $2,320, might see further declines, especially if support levels at $2,380 and $2,320 are broken. Technical indicators like MACD and RSI also suggest bearish sentiment.

In a broader context, Ethereum's recent price action reflects a risk-off sentiment in the market, with traders cautious about further declines. The crucial support at $2,400 and lower levels will be vital to watch, as breaking below them might accelerate downward momentum. Resistance levels between $2,460 and $2,540 are critical to monitor for signs of a potential rebound.

Overall, traders should exercise caution, as the downtrend could continue unless Ethereum manages to clinch above key resistance levels. Maintaining close attention to technical signals and support levels will be essential for timing entries and exits in this volatile environment.