Ethereum is once again under pressure as it struggles to hold recent gains. After peaking near $2,580, ETH reversed sharply and recently tested $2,320. The bulls are losing steam, and unless key resistance levels are broken, the bears may take full control of the market.
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Current Market Outlook – ETH Struggling to Stay Afloat
Ethereum attempted a recovery toward $2,580 but faced strong rejection and began a downward correction. It’s currently trading below $2,500 and the 100-hour Simple Moving Average (SMA) — both key signs of short-term weakness.
Bearish Trendline Active on Chart:
On the hourly ETH/USD chart, there’s a clear negative trendline forming resistance near $2,540. As long as this trendline remains unbroken, ETH will likely face repeated rejections during any recovery attempts.
Fibonacci Levels Indicate Support & Resistance Zones:
The price dropped below the 50% Fib retracement level of the recent swing from $2,308 to $2,509.
ETH is now trying to hold the 61.8% Fib level, around $2,400, as immediate support.
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Bullish Case – Can ETH Break Through $2,550?
A strong close above $2,500 would be the first sign of bullish strength. However, the real test lies around $2,540–$2,550, where both the trendline resistance and key psychological levels converge.
If Ethereum can break $2,550 with volume, it could trigger a powerful rally toward:
$2,580 (previous high)
$2,700 (first major breakout target)
$2,780 (extended target if bulls maintain momentum)
But remember — no volume = no breakout. Wait for confirmation.
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Bearish Case – Risk of Falling to $2,220?
If ETH fails to break above $2,500 convincingly, the bearish pressure could drag the price down again. Key downside support zones include:
$2,400 (psychological and Fib support)
$2,350 (short-term structure support)
A breakdown below $2,350 could lead to a sharp decline toward $2,320 and possibly $2,220. If that support fails too, ETH might even test $2,120 in a worst-case scenario.
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Technical Indicators – Bearish Momentum in Control
MACD: Gaining strength in the negative zone — signaling increasing selling pressure
RSI (Hourly): Below 50 — confirms bearish momentum
100-hour SMA: ETH is trading below this moving average — a clear bearish sign
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Conclusion – Battle Between Bulls & Bears is Heating Up
Ethereum is at a critical decision point. Bulls must reclaim the $2,550 resistance zone to regain control, while bears will aim to keep ETH below $2,500 and push for another drop.
Trader Tips:
Bullish traders should wait for a confirmed breakout above $2,550 with high volume.
Bearish traders can look for rejection patterns around $2,500–$2,540.
Neutral traders are better off staying on the sidelines until the breakout or breakdown is confirmed.
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Key Levels to Watch:
Support Zones: $2,400, $2,350, $2,220
Resistance Zones: $2,500, $2,550, $2,580
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