Ethereum Drops 3.5% After 35% Gain, Faces $2,500 Resistance

Ethereum's price has recently experienced a notable correction after reaching a high of $2,624. The cryptocurrency, which had been on an upward trajectory, is now trading below the $2,500 resistance zone. This correction comes after Ethereum gained over 35% and tested the $2,600 resistance zone. The price is currently above $2,400 and the 100-hourly Simple Moving Average, indicating that bulls are still active in the market.

Despite the recent decline, Ethereum's price remains supported above $2,400. However, there are hurdles near the $2,500 level, with the next key resistance at $2,550. A clear move above the $2,620 resistance could send the price toward the $2,650 resistance, potentially leading to further gains in the coming sessions. If Ethereum can break above the $2,650 resistance, it could rise toward the $2,720 resistance zone or even $2,780 in the near term.

On the downside, if Ethereum fails to clear the $2,500 resistance, it could start a fresh downside correction. Initial support on the downside is near the $2,400 level, with the first major support sitting near the $2,350 zone. A clear move below the $2,350 support might push the price toward the $2,275 support, and any more losses might send the price toward the $2,220 support level in the near term. The next key support sits at $2,200.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI for ETH/USD is now below the 50 zone. This indicates that the market sentiment is turning bearish, and a further decline in Ethereum's price could be on the horizon. However, it is important to note that the market is still volatile, and any sudden changes in market sentiment could lead to a reversal in Ethereum's price trend.

In conclusion, Ethereum's recent price correction is a healthy cooldown after its impressive rally. However, it is important to monitor the market closely and be prepared for any potential downside risks. If Ethereum can break above the $2,620 resistance, it could continue its upward trajectory and reach new highs. On the other hand, if it fails to clear the $2,500 resistance, it could start a fresh downside correction and test the $2,350 support zone. Investors should remain cautious and keep an eye on the market developments to make informed decisions.