Why Is Ethereum Struggling Below $2,500? Key Levels Traders Should Watch

The solana etf blackrocksecond-largest cryptocurrency has entered a corrective phase, with Ethereum's valuation slipping beneath the psychologically significant $2,550 threshold. Market participants are closely monitoring whether current levels can establish a foundation for potential recovery or if further downward movement awaits.

• ETH breached multiple support zones including $2,565 and $2,550 in recent trading sessions

• The digital asset currently hovers above its 100-hour moving average while testing crucial price floors

• Technical charts reveal a breakdown from an ascending channel pattern that previously provided stability

• Market sentiment appears cautious as traders assess the $2,400 support region's durability

Market Structure Shows Bearish Characteristics

Following unsuccessful attempts to overcome resistance near $2,650, Ethereum entered a consolidation pattern that ultimately resolved to the downside. The subsequent price action invalidated several support levels that previously attracted buying interest.

Technical analysts note the significance of the channel breakdown around $2,610, which accelerated selling pressure. The subsequent dip below $2,500 established a local bottom at $2,394 before some stabilization occurred.

Current trading conditions place Ethereum beneath both the $2,500 psychological level and its 100-hour moving average. Immediate resistance appears near $2,460, coinciding with a Fibonacci retracement level from recent highs to lows.

Should buying momentum return, traders will watch for potential resistance near $2,500 and $2,540. The latter represents a 50% retracement of the recent downward move and could serve as a pivotal area for market direction.

Potential Market Scenarios Developing

Failure to reclaim higher levels could prompt additional downside exploration. Initial support resides near $2,400, followed by more substantial floors at $2,380 and $2,350. Market participants should monitor these zones for potential buying interest or breakdown scenarios.

Technical indicators currently reflect bearish momentum. The Moving Average Convergence Divergence (MACD) shows increasing downward pressure, while the Relative Strength Index (RSI) remains below neutral territory, suggesting sellers maintain control.

• MACD readings indicate strengthening bearish momentum across shorter timeframes

• RSI levels suggest oversold conditions haven't yet materialized

• Critical support zones cluster between $2,320-$2,380

• Key resistance awaits near $2,500-$2,540 range

Market participants continue evaluating macroeconomic conditions and network-specific developments that could influence Ethereum's price discovery process in coming sessions. The $2,500 level remains a focal point for both bulls and bears in current market conditions.