Ethereum Drops 4.4% From $2,640 Zone, Consolidates at $2,523

Ethereum (ETH) has experienced a notable price correction, retreating from the $2,640 zone earlier this week. As of now, the price is consolidating around $2,523, forming a symmetrical triangle on the broader chart. This structure indicates key support at $2,480 and resistance at $2,560. Multiple indicators suggest that ETH is poised for its next directional move, but the question remains whether bulls can maintain control.

On the 4-hour chart, Ethereum has rebounded from the $2,450 zone, reclaiming the mid-Bollinger Band and stabilizing just above the 100 EMA at $2,486. The four EMAs (20/50/100/200) are tightly clustered between $2,486 and $2,525, indicating a pivotal area for ETH. A decisive move from this level will likely determine whether Ethereum's price action turns bullish or retreats.

Structurally, ETH continues to respect a broad ascending triangle formed since early June, with higher lows seen near $2,240 and a horizontal ceiling near $2,560. The current candle structure shows reduced volatility and tightening price action, setting up a classic scenario for either a breakout continuation or a breakdown reversal.

The recent dip in Ethereum's price can be attributed to overhead rejection from the $2,640–$2,660 resistance band, where selling pressure consistently halted upside attempts. As seen in the RSI and MACD on the 30-minute chart, momentum weakened sharply after failing to close above $2,630. Additionally, bearish divergence was spotted earlier this week, where the RSI formed lower highs while price action attempted higher highs. This was followed by a downward crossover in MACD and a drop below the VWAP zone.

Open interest data shows a slight contraction of 0.6%, and 24-hour liquidations have totaled $42.68 million, with more short-side pressure than long-side support. While the long/short ratio on Binance remains slightly bullish at 2.10, a breakdown below $2,480 could invite another round of stop-triggered selling.

On the 1-day chart, Ethereum is still inside a large symmetrical triangle, bounded by resistance near $2,760 and support above $2,240. Fibonacci levels drawn from the $4,100 high to the $1,385 bottom show ETH reclaiming the 0.382 zone at $2,424, with the next major hurdle being the 0.5 retracement level at $2,745. Zooming out, the monthly chart reveals a long-term symmetrical triangle that has been developing since late 2021. ETH is now testing the upper boundary of this structure for the third time after bouncing from a multi-year ascending trendline. Notably, this triangle contains two significant lower highs that align with rejection zones near $3,465 and $4,096 — key macro resistance levels. A decisive breakout above this triangle would signal a major trend reversal, potentially setting up Ethereum for a retest of its all-time highs.

The short-term outlook remains cautiously bullish as long as ETH holds above $2,480. Reclaiming $2,560 with volume confirmation could open a retest of the $2,600–$2,640 liquidity pocket. A clean close above that level would suggest a breakout from the triangle and continuation toward $2,745. On the downside, a failure to hold $2,480 could result in a quick drop toward the $2,424 support, and then $2,360, where prior breakouts have previously held. Given the current low volatility, Ethereum price volatility is expected to increase as the triangle apex nears. Traders should watch the $2,480–$2,560 zone closely, as any breakout or breakdown from this range could trigger a multi-day trend.