Ethereum Drops 6.21% Amid Geopolitical Tensions

Ethereum's price experienced a notable decline on June 24, falling below the $2,400 mark. This drop was part of a broader market reaction to geopolitical tensions, particularly in the Middle East. The 24-hour percentage change narrowed to 6.21%, indicating a slowing momentum in Ethereum's upward trajectory. Previously, Ethereum had seen a robust 7% surge, pushing its value back towards the $2,400 mark, but the recent drop has reversed some of those gains.

The cryptocurrency's price has been volatile, with intraday dips below $2,200 highlighting the market's sensitivity to external factors. Ethereum faced resistance near the $2,340–$2,400 range, making it challenging to sustain gains above this level. Over the past seven days, Ethereum's price has fallen about 5 percent, with a notable drop below $2,400 on Saturday afternoon. This decline has led to a consolidation phase, with investors remaining cautious about further potential drops.

Despite the recent decline, there is still potential for Ethereum to recover. A clear move above the $2,400 resistance might send the price toward the $2,500 mark. However, if Ethereum fails to break the $2,340 resistance, there is a possibility that the price will drop again. Initial support lies near $2,200, with the next major support in the $2,150 zone. If the price manages to break below this support, Ethereum could head to $2,120 support, and if the decline continues, the next target is $2,050.

Technical indicators suggest that Ethereum may still be under pressure. The hourly Moving Average Convergence Divergence (MACD) for ETH/USD shows increasing bearish momentum, while the hourly Relative Strength Index (RSI) is below 50, suggesting further bearish strength. This signals that Ethereum may face difficulties in sustaining its current price recovery. The current key support level for Ethereum is $2,150, while key resistance is at $2,340. If Ethereum can break this resistance, there is potential to return to the $2,400 level and possibly reach $2,500.

Investors and traders should monitor technical indicators and support and resistance levels to make informed investment decisions in these uncertain times. Although Ethereum is facing some challenges in the current market, there is room for optimism if it can break some key resistance levels. The market's sensitivity to geopolitical tensions and the potential for further declines highlight the need for cautious optimism in the cryptocurrency's future performance.