Ethereum Drops 4% in 24 Hours, Faces Key Resistance at $2,535

Ethereum's price has recently experienced a sharp 4% drop in the last 24 hours, leaving traders and analysts to speculate on the next potential movements. The immediate resistance for Ethereum stands at $2,535, which aligns with the recent rejection zone. If Ethereum manages to break above this level, it could push toward the 50-week Simple Moving Average (SMA) at $2,744, which is the next critical resistance level. Conversely, Ethereum has entered a minor support zone at $2,400, with stronger support lying at $2,200. If the bearish momentum continues, a retest of $2,200 is highly probable. The major psychological support remains at $1,800, where strong buyer interest might return if Ethereum drops to this level.

The Relative Strength Index (RSI) is currently at 39.30, well below the neutral 50 level, indicating that Ethereum is approaching oversold conditions but hasn’t hit bottom just yet. For swing traders, the entry zone is around $2,200 if the price drops further, with take profit targets at $2,535 (short-term) and $2,744 (mid-term). The stop loss is set at $1,800 to limit downside risk. Short-term traders might consider shorting if Ethereum fails to break above $2,535 again, targeting a drop back to the $2,200 zone with a tight stop loss above $2,550.

If Ethereum holds above the $2,400 mark and breaks through the $2,535 resistance, a bullish reversal could target the $2,744 resistance and possibly the $3,200 psychological level in the coming months. However, failure to reclaim $2,535 could trigger a further correction toward $2,200 or even $1,800 before any significant rebound. The current market conditions suggest a cautious approach, with traders closely monitoring key resistance and support levels to make informed decisions.