Ethereum Price Drops 4% After Failing to Clear $2,520 Resistance

Ethereum's price has recently shown signs of a bearish turn, with a potential near-term correction on the horizon. The cryptocurrency started a fresh increase above the $2,450 zone, but has since begun to correct gains from the $2,520 level. This correction has led to a break below a connecting bullish trend line with support at $2,450 on the hourly chart of ETH/USD.

The price of Ethereum is currently trading above $2,400 and the 100-hourly Simple Moving Average. However, the bulls have been active above the $2,500 level, and a high was formed at $2,520. The price is now correcting some gains, with a move below the 23.6% Fib retracement level of the upward move from the $2,114 swing low to the $2,520 high.

If Ethereum fails to clear the $2,520 resistance, it could start a fresh decline. Initial support on the downside is near the $2,400 level, with the first major support sitting near the $2,320 zone. A clear move below the $2,320 support might push the price toward the $2,250 support, and any more losses might send the price toward the $2,200 support level in the near term. The next key support sits at $2,150.

On the upside, the price could face resistance near the $2,500 level, with the next key resistance near the $2,520 level. The first major resistance is near the $2,550 level, and a clear move above this resistance might send the price toward the $2,600 resistance. An upside break above the $2,600 resistance might call for more gains in the coming sessions, with Ether potentially rising toward the $2,720 resistance zone or even $2,800 in the near term.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI for ETH/USD is now below the 50 zone. This indicates a potential bearish turn for Ethereum's price action in the near term, with a risk of a correction to the downside.