Ethereum Drops Below $2,434 Resistance, Bearish Momentum Grows

Ethereum is currently in a precarious position, trading below a critical resistance level of $2,434. This reluctance to surpass this threshold indicates a growing bearish influence and a deteriorating market structure. The price range between $2,300 and $2,400 is identified as a high-risk zone, where any drop below $2,313 could trigger increased volatility and a rapid decline.

Over the recent decline, Ethereum has shown a lack of substantial buying interest. The intraday increase in sell-side volume was significant, but Ethereum has failed to stage an upside trend break, resulting in increased weakness. Ethereum has experienced a serious liquidity sweep, bringing it close to the lower limit of its current trading range. Critical levels, based on on-chain and technical indicators, suggest that Ethereum is struggling to recover, making the short-term outlook unstable. If Ethereum fails to push past the current support level of $2,434, it could invite further selling activity.

The presence of a large inefficiency zone between $2,300 and $2,400 adds to the risk. This gap could act as a magnet for further downside momentum if bearish sentiment continues. Analysts tracking institutional behavior point to this zone as a potential area where market structure could break, leading to a deeper retracement if not reclaimed soon.

A 4-hour ETH/USDT chart reflects Ethereum trading around $2,420.79, placing the asset below a key support-turned-resistance line at $2,434. Price movement has also dipped beneath the $2,390 level, pushing ETH into a consolidation area marked by reduced directional conviction. Closer to the $2,379 level lies a “danger zone,” and a break below $2,313.15 could result in increased downside acceleration.

Volume data shows that trading activity spiked near the recent low, indicating elevated sell-side pressure. The chart highlights the likelihood of intensified volatility if ETH fails to recover lost levels. Unless Ethereum stabilizes above $2,434 in the near term, technical patterns suggest that momentum could shift further in favor of sellers.

Intraday data reinforces the bearish structure. ETH opened at $2,387.81 but quickly declined, breaking below $2,300 and stabilizing within the $2,260 to $2,290 range. Despite short-lived rebounds, the overall price trend remained weak. Trading volume surged during the drop but showed no substantial recovery, reflecting limited demand. The MA deviation indicator also registered a negative reading, signaling rising short-term bearish strength. With ETH unable to reclaim former support zones, market conditions remain fragile, and a close watch on the $2,250 level is warranted for potential breakdown continuation.