Ethereum (ETH) began Friday, May 23, with signs of weakening after a strong rejection in the resistance area near $2,713. On the 4-hour chart, the price pulled back and traded below the central average of the Bollinger Bands, indicating growing selling pressure in the short term. This movement raises concerns among investors, as the asset was unable to sustain the previous breakout.
The Relative Strength Index (RSI) is currently at 48.41, below the neutral line of 50, which reinforces the dominance of selling pressure. The RSI had been showing signs of recovery, but it has pointed downward again after the price pullback, indicating that the upward momentum has lost steam.
Supports and resistances on the market's radar
On the support side, the $2,459 zone emerges as an immediate level of attention, being the lower base of the Bollinger Bands. Losing this region could open space for sharper declines down to $2,360, where there was a concentration of volume in previous days. The short-term resistance remains at $2,713, which coincides with the recent peak and represents an important psychological barrier.
Ethereum price analysis. Source: TradingView
If Ethereum manages to regain buyer strength and break through $2,713 with volume, there is room for a new attempt at a rally. However, the current scenario suggests that the market is in a consolidation phase, with a bearish bias prevailing in the short term.
The movement of ETH in the upcoming candles will be crucial in determining whether the asset can remain above supports or if it will deepen the correction that began today. Investors should pay extra attention to volume and the formation of new reversal or continuation patterns.
Furthermore, the global macroeconomic situation and monetary policy decisions in the United States are also expected to influence Ethereum's behavior in the coming days. Indicators such as inflation, employment data, and expectations regarding cuts or maintenance of interest rates by the Federal Reserve may affect investors' risk appetite for crypto assets. Therefore, even with local technical signals, ETH remains subject to external variables that can quickly alter the current technical landscape.
The article Ethereum Analysis (ETH): price pulls back after rejection at resistance was first seen on BeInCrypto Brazil.
