Ethereum Drops Below $2,600, Faces Further Declines

Ethereum's price has been on a downward trajectory, failing to surpass the $2,680 mark and subsequently declining. The cryptocurrency is currently consolidating losses and is at risk of further declines below the $2,500 threshold. Ethereum initiated a fresh decline, dropping below the $2,620 and $2,600 levels, with bears pushing the price beneath $2,600. There was a notable break below a bullish trend line with support at $2,540 on the hourly chart of ETH/USD. The pair tested the $2,450 zone and entered a consolidation phase.

Ethereum's price has seen a minor increase above the 23.6% Fib retracement level of the downward move from the $2,679 swing high to the $2,455 low. Currently, Ethereum is trading below $2,550 and the 100-hourly Simple Moving Average. On the upside, the price could encounter resistance near the $2,540 level, with the next key resistance near the $2,565 level. This resistance is close to the 50% Fib retracement level of the downward move from the $2,679 swing high to the $2,455 low. The first major resistance is near the $2,620 level.

A clear move above the $2,620 resistance might propel the price toward the $2,680 resistance. An upside break above the $2,680 resistance could lead to more gains in the coming sessions. In this scenario, Ether could rise toward the $2,800 resistance zone or even $2,880 in the near term. However, if Ethereum fails to clear the $2,540 resistance, it could start a fresh decline. Initial support on the downside is near the $2,500 level, with the first major support sitting near the $2,450 zone. A clear move below the $2,450 support might push the price toward the $2,320 support. Any further losses might send the price toward the $2,240 support level in the near term, with the next key support at $2,150.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $2,450, and the major resistance level is at $2,540. Ethereum's price is currently at a critical juncture, with bears testing key support levels. The cryptocurrency's ability to hold above $2,500 will be crucial in determining its short-term direction. If it fails to do so, further declines could be on the horizon. Conversely, a break above $2,620 could signal a potential reversal and lead to gains toward the $2,800 resistance zone.