Ethereum Drops Below $2,500 – Market Shows Signs of Caution
Ethereum (ETH) dipped under $2,500 early Friday, trading at $2,491.16. Despite a 5.17% gain in the past 24 hours, the recent rally has slowed, signaling a cooling-off phase after hitting $2,650 earlier this week.
What’s Happening?
ETH surged earlier on hype around network upgrades and adoption.
Traders started taking profits, causing prices to pull back.
$2,500 is a key support level—falling below it suggests short-term weakness.
Why the Drop?
Fed comments on inflation and rates made investors cautious.
Many traders sold after a strong 40% run-up since mid-April.
Concerns over crypto regulations, especially on DeFi and staking, added pressure.
What Experts Say
Some think it’s just a healthy pause before more gains.
Others warn ETH could fall further if Bitcoin drops.
What’s Next?
Traders are watching network activity and gas fees.
Big hopes are pinned on a possible Ethereum ETF approval.
Bottom Line
ETH’s dip below $2,500 shows caution is returning to the market. The next few weeks will be key to see if Ethereum can bounce back.
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