Ethereum Holds Above $2,477 Amid Market Uncertainty, Institutional Interest Grows

Ethereum, the second-largest cryptocurrency, has demonstrated resilience in the face of broader market uncertainty, holding above the $2,477 mark. This stability comes despite global economic tensions and trade disputes that continue to influence cryptocurrency markets. The cryptocurrency has been navigating a critical technical zone between $2,500 and $2,530, which analysts identify as immediate resistance that must be overcome for continued upward movement.

Institutional interest in Ethereum remains robust, with spot Ethereum ETFs recording consecutive days of positive inflows. This signals growing confidence from larger investors, despite the recent volatility in the market. The technical analysis of Ethereum's price action reveals a substantial 3.5% range, with a sharp sell-off during the midnight hour seeing the price plummet to $2,477.40. This established a key support zone, confirmed by extraordinary volume. Buyers stepped in at the $2,467-$2,480 support band, as indicated by high-volume accumulation during the 08:00-09:00 period. Recent price action shows bullish momentum with Ethereum reclaiming the $2,515 level, suggesting that the correction may have found its bottom.

The $2,520-$2,530 area remains the immediate resistance to overcome for continued upward movement. A significant bullish surge at 13:35 saw the price jump from $2,515.85 to $2,521.79, accompanied by exceptional volume. However, a sharp reversal occurred at 14:00, with the price dropping 5.07 points to $2,508.02 on heavy volume, demonstrating market indecision with an hourly range of 14.46 points ($2,508.02-$2,522.48).

Ethereum's price structure has entered a sideways consolidation following last week’s steep rally toward $2,730. On the 4-hour chart, Ethereum is testing the ascending trendline from May 7 while staying just above the 50-EMA ($2,539) and 100-EMA ($2,477), signaling short-term indecision. On the 30-minute chart, a clear descending resistance trendline capped recent upside attempts, with $2,575 now acting as immediate intraday resistance. If bulls manage to push above this zone, the next challenge will be the key supply zone between $2,620 and $2,667, where previous rejections occurred.

Indicators show a neutral but cautiously bullish bias. The 4-hour Bollinger Bands are narrowing, with the price compressing between the midline and lower band. Ethereum is trading just under the middle band, indicating that any breakout must reclaim this level first for bullish continuation. A clean move above $2,600 could trigger fresh Ethereum price spikes. The RSI on the 30-minute chart stands at 44.65 and is trying to recover from oversold levels. A sustained move above 50 would confirm intraday strength. Meanwhile, the MACD has printed a mild bullish crossover, but histogram momentum remains muted, reflecting market hesitation.

The Stochastic RSI shows Ethereum printed a sharp move into the overbought region, but the curve is now flattening, hinting at potential slowdown in upward momentum unless a breakout occurs. The Chande Momentum Oscillator reads at 12.52, showing mild strength but not enough to confirm a new leg higher without volume. Ichimoku analysis on the 30-minute chart shows the price still battling the cloud’s lower boundary. Ethereum needs to flip this into support to confirm a bullish Kumo breakout. For now, the bearish Tenkan-Kijun cross and thick overhead resistance cloud still weigh on short-term sentiment.

The question of why Ethereum's price is going down today, despite holding above key support, lies in macro-driven hesitation across altcoins and rejection near the $2,700 region. This coincides with long-standing daily resistance and profit-taking levels. Ethereum has been unable to break above the 0.5 Fibonacci retracement, suggesting that many traders are locking in gains after the strong May rebound. This has caused a temporary cooldown in Ethereum price action, though bulls remain structurally intact above the 100-EMA and major trendline zones.

Looking ahead to May 25, Ethereum’s behavior around the $2,500–$2,504 support will be critical. A break below this range could drag prices toward the next demand zone. On the upside, reclaiming $2,575 and pushing toward $2,600 would be the first step toward recovery. If bulls manage to flip $2,600 into support, we may see another retest of the $2,667–$2,700 zone. However, failure to hold above $2,500 would expose Ethereum to deeper correction, potentially toward $2,424 or even $2,350. Still, the broader bias remains cautiously bullish as long as $2,426 holds on higher timeframes.