Ethereum (ETH) has recently corrected its price and retested the $2,320 area, currently facing downward pressure.

Compared to Bitcoin's performance, ETH has failed to effectively break through the key resistance level of $2,520, resulting in a price pullback and testing lower support levels.

Price retracement tests support levels.

Ethereum's price began to retrace after failing to break through the resistance level of $2,520.

ETH once fell below the support levels of $2,500 and $2,440, reaching a low of $2,308.

The current price is above the 61.8% Fibonacci retracement level between $2,308 and $2,509, indicating that bulls are still active in this area.

Nevertheless, ETH's price remains below $2,450 and the 100-hour simple moving average.

The bearish trend line constitutes resistance.

A connecting bearish trend line has formed on the ETH/USD hourly chart, with the current resistance at $2,540.

If the price rebounds, it is expected to encounter strong resistance near $2,460, with further resistance around $2,500.

If it successfully breaks through $2,500, the next target will be around $2,550 and its trend line, potentially reaching $2,580 after the breakout.

If the price breaks through $2,580, a larger upward movement may follow, potentially rising to $2,700 or even $2,780 in the short term.

Downward risks are increasing, with support around $2,220.

If ETH cannot break through the resistance level of $2,500, it may trigger a new round of declines.

The initial support level is at $2,400. If the price breaks below this point, the next support level will be $2,350.

If the price further retreats, $2,320 and $2,220 will become the key support areas.

If it drops below $2,220, the price may further decline to $2,120.

Technical indicators signal bearish.

MACD

: The MACD for ETH/USD is gaining momentum in the bearish zone, indicating significant downward pressure in the short term.

RSI

: The hourly RSI has already fallen below the 50 area, further confirming the current bearish momentum.

Summary: Breaking the $2,500 level may determine future trends.

Ethereum is currently facing a critical technical bottleneck. Breaking the resistance level of $2,500 would open the door for further upward movement, potentially pushing the price towards $2,700 or even higher.

However, if it fails to break through this resistance level, ETH may further decline, testing support levels of $2,400, $2,350, and $2,220, leaving future trends uncertain.