Ethereum Drops 2% to $2,478 as Bearish Pressure Intensifies

Ethereum's price has experienced a notable decline, currently trading around $2,478, marking a nearly 2% drop over the past 24 hours. This downward trend is attributed to bearish pressure, which has hindered recent attempts to break above $2,540. Despite holding above its May support zone last week, the latest candle formations and volume flow indicate renewed selling interest, raising concerns about short-term downside risks. Indicators suggest a weakening momentum phase, which aligns with the bearish sentiment.

The Ethereum price action has slipped below a key ascending trendline that supported the rally from early May. On the 30-minute and 4-hour charts, ETH has broken below the $2,500 threshold, forming a lower high below the $2,560 rejection zone. This move confirms a potential breakdown from a rising wedge pattern, with sellers regaining control after multiple failed attempts to break $2,580. Red resistance zones between $2,560 and $2,600 are now acting as firm ceilings, while ETH eyes a retest of horizontal support at $2,445 and $2,420.

The Relative Strength Index (RSI) on the 30-minute chart has dropped to 28.8, entering oversold territory for the first time in several sessions. This sharp decline in RSI reflects a spike in Ethereum price volatility, where sellers have overwhelmed intraday buyers after the breakdown. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a clear bearish crossover, with both the MACD and signal lines trending downward, supported by expanding red histogram bars. This shift reinforces the narrative of a bearish wave building below the $2,500 threshold, especially as ETH struggles to reclaim previous support.

The Ichimoku Cloud indicator on the 30-minute and 1-hour charts shows that Ethereum is now trading below the cloud base, with the Tenkan-sen and Kijun-sen lines crossing bearishly. The price structure remains beneath the baseline (Kijun), hinting at further weakness unless ETH recovers above $2,500 swiftly. Bollinger Bands on the 4-hour chart are also widening as ETH touches the lower band near $2,480. This indicates increasing volatility and a rising chance of follow-through selling if bulls cannot generate a bounce soon. The middle band at $2,535 and the upper band near $2,583 now represent stiff short-term resistance levels.

Zooming out, the weekly Fibonacci retracement indicates that ETH is trading below the 0.5 level at $2,745 and struggling to hold above the 0.382 level at $2,424. This Fibonacci zone between $2,420 and $2,745 is crucial for defining the broader bias. A close below $2,420 would invalidate the bullish thesis and open the door for a test of the 0.236 level near $2,027. On the daily chart, Ethereum has rejected the upper boundary of the descending trendline that connects the $3,000 and $2,800 peaks from March and April. Unless ETH breaks back above $2,560 and reclaims the $2,600 pivot, the larger structure now leans bearish.

If Ethereum fails to close back above $2,500, the downside trajectory could continue toward $2,445 and $2,420. A deeper sell-off could expose the $2,300–$2,260 support band, which aligns with the 200 EMA and a key confluence zone seen earlier in May. On the upside, a reclaim of $2,540 and a close above $2,560 would shift sentiment back in favor of buyers, with next resistance at $2,600 and $2,733—the April high. However, with momentum turning bearish and structure failing to hold, traders may approach bounce attempts with caution.

Unless bulls regain control quickly above the $2,500 level, Ethereum risks slipping further into a corrective phase. The next 24 hours will be critical in defining whether this move is a breakdown or just another pullback inside a broader accumulation range.