- Ethereum is trading close to $2,480 because it could not move past $2,738 and the 0.382 Fib level.
- Momentum is weakening by Stochastic RSI and MACD standards
- The price has reached support at $2,450, and traders are waiting to see if it will move higher or lower toward $2,300.
After recovering from its recent low, Ethereum is approaching a potential short-term breakout. Previously, the Stochastic RSI indicated clear shifts that caused the market to go up or down. The momentum presently remains below the overbought zone, which could indicate that the trend will continue for several more weeks.
The last turning points occurred as the Stochastic RSI moved into extremes and indicated a change in trend. The present situation is similar to what was seen in the past before the trend switched. The price of Ethereum is now close to $2,486, and the movement is still gaining strength. Analysts are observing the asset closely to determine if it will build up and form another local top.
Now, the oscillator is on the rise again, which follows a pattern seen in previous upswings in the market. After dropping in April, Ethereum has moved back up to about $2,486. Recent candle formation suggests resistance is forming and could lead to a temporary pullback, like in similar setups.
However, past observations have shown that Ethereum’s price remained unchanged when the oscillator reached this point or went down shortly afterwards. Watching closely for early hints that the momentum may be decreasing or the trend could change, traders track ETH as it approaches this level again.
Short-Term Indicators Show Growing Weakness
Ethereum is currently trading at nearly $2,482 after a quick increase earlier this month that took it to nearly $2,600. Early in May, the asset made some gains, but now it is going through a period of consolidation. The 4-hour chart shows that ETH has formed a descending triangle, often representing a slowdown in movement upward.
The price of Ethereum has fallen below its 20-EMA at $2,553 and is now being supported near its 50-EMA at $2,450. Bollinger Bands are getting narrower, which shows that volatility might increase soon. At the moment, ETH is trading for $2,491.80. The pattern suggests that the trend over the short term is shifting. This drop was caused by traders who had recently bought as prices rose from $2,000 and now want to sell for profits.
Meanwhile, the RSI dropped to 42.67 after peaking above 70 during the rally. However, the MACD line crossed below the signal line, with histogram bars now in red. Both indicators reflect fading momentum and potential for further correction or consolidation in the sessions ahead.
Weekly Resistance Zone Limits Price Movement
Currently, Ethereum is being traded at $2,480 as it failed to rise above $2,738. The price is below $2,579, representing the 0.382 Fibonacci zone. Failure to maintain the current level could cause the price to fall more should the short-term support at $2,450 break down.
In addition, the weekly candle features a long upper wick and a compact body, showing buyers are holding back near resistance. The range high has remained strong for Ethereum for some time now. If the price keeps dropping, the next level of support would be $2,300.
Many traders are monitoring this price closely, as it works as a technical resistance and a former activity area. If Ethereum is above this level, it could mean the bullish signal is still intact. However, if the price falls too low, it might cause more people to sell, weakening things shortly.
