Ethereum's 10% Drop, Consolidation at $2300

Ethereum (ETH) Price: 10% Decline Followed by Consolidation at $2,300 Support Level

Ethereum, the second-largest cryptocurrency by market capitalization, has recently experienced a notable price decline followed by signs of potential recovery. The digital asset dropped over 10% from its resistance zone but is now showing indications of stabilizing, according to recent market data.

The price of Ethereum failed to break through the $2,650 resistance level and subsequently began a fresh decline, following a similar pattern to Bitcoin. ETH lost momentum after falling below several key support levels at $2,620 and $2,550, entering what traders consider a bearish territory.

During this downward movement, Ethereum’s price fell dramatically, dropping below the $2,500 support zone. The decline continued until reaching a low point of $2,309, where the price began to consolidate its losses and show the first signs of recovery.

Market data indicates that a minor recovery wave has formed, pushing the price above the 23.6% Fibonacci retracement level of the downward movement that started from the $2,855 swing high and extended to the $2,309 low. This technical indicator suggests a modest reversal in the short-term trend.

Currently, Ethereum is trading below both the $2,550 price point and the 100-hourly Simple Moving Average, a technical indicator that many traders use to determine market direction. Analysts have also identified a short-term bearish trend line forming with resistance near the $2,500 mark on the hourly ETH/USD chart.

Looking at immediate challenges, Ethereum appears to be facing hurdles near the $2,500 level. The first major resistance is identified around $2,580, which coincides with the 50% Fibonacci retracement level of the recent downward movement from $2,855 to $2,309.

The main resistance is forming near $2,650. Technical analysts suggest that if Ethereum can clearly move above this $2,650 resistance point, it might continue upward toward the next resistance level at $2,720. Breaking above this threshold could potentially trigger