Ethereum Price Drops 3% as Momentum Fades Near $2,700 Resistance

Ethereum's price is currently trading near $2,630, having failed to sustain above the short-term resistance at $2,700. Despite recent upward momentum, the price action is showing signs of exhaustion, with multiple indicators suggesting a potential pullback or consolidation phase. The Ethereum price rallied sharply from the $2,420 support zone earlier this month, briefly reaching the $2,698 region. This surge was aligned with broader altcoin strength and Bitcoin’s rally past $110K. However, the bulls are now facing difficulty maintaining momentum as ETH trades back below its immediate resistance line.

On the 4-hour chart, Ethereum has failed to hold above the upper Bollinger Band and is now retracing toward the midline around $2,580. The 20 and 50 EMA levels at $2,602 and $2,569 are key pivot zones to watch, with a sustained close below these levels likely opening downside risks toward the $2,500 psychological support. Momentum indicators are starting to turn cautious. The Relative Strength Index (RSI) on the 30-minute and 4-hour timeframes has cooled from overbought zones and now reads near 42, signaling weakening bullish strength. The MACD has printed a bearish crossover with widening histogram bars below the baseline, adding to the cautious tone. Further, the Chande Momentum Oscillator has slipped to 13.42, down significantly from last week’s readings above 60, indicating that upward price strength is fading. With this alignment across short-term indicators, a period of sideways or downward movement appears increasingly probable.

The question arises: why is the Ethereum price going down today despite the recent bullish structure? The answer lies in multiple layers of technical exhaustion and lower timeframe rejection zones. Firstly, Ethereum’s inability to hold above $2,698 coincides with the 0.5 Fibonacci level (from November highs to March lows), acting as a natural resistance zone. Secondly, the bearish divergence between price and momentum oscillators (MACD and RSI) indicates that the rally lacked sufficient strength for continuation. Lastly, on the Ichimoku chart, ETH has dipped back into the Kumo cloud, suggesting indecision and potential chop. If the price fails to reclaim $2,664 in the near term, downside risk toward $2,575 and even $2,476 cannot be ruled out.

Despite this short-term pullback, Ethereum’s broader structure remains bullish. On the daily chart, ETH continues to trade well above its 100-day EMA ($2,485) and the major ascending trendline. The higher low structure remains intact, and bulls are likely to re-enter around the $2,575–$2,500 zone, which has repeatedly acted as a demand region. Furthermore, the weekly chart shows ETH stabilizing above the 0.382 Fibonacci retracement at $2,424, keeping the door open for a potential retest of $2,745 if current support levels hold. However, price volatility is expected to remain elevated ahead of U.S. macro data later this week, which may affect the broader crypto sentiment.

Heading into May 29, ETH must defend the $2,575–$2,600 cluster to avoid deeper pullbacks. A clean break above $2,664 could re-open upside potential toward $2,745 and possibly $2,800 if momentum returns. On the downside, a sustained close below $2,475 could invite pressure toward the $2,420 and $2,315 support zones. Ethereum remains in a structurally bullish position over the medium term, but Ethereum price volatility is expected to stay high as bulls and bears battle for control near $2,600. With multiple timeframes suggesting temporary weakness, traders should watch for confirmation at key EMA and Fibonacci support zones before positioning for the next major move.