Ethereum at Risk of Major Drop as Bulls Lose Steam

Ethereum (ETH) is under mounting pressure as its price slips to $2,508, hovering precariously above the critical 200-day EMA. Historically a strong support level, the 200 EMA now represents the last line of defense for bulls. However, current price action shows signs of weakness, and a sustained hold at this level seems uncertain.

ETH’s bullish momentum from April and May has faded, with the asset moving sideways within a narrow channel. The recent breakdown from this consolidation pattern suggests a bearish shift. A particularly worrying sign is the sharp decline in buying volume, highlighting a lack of interest from traders and reinforcing bearish sentiment.

If Ethereum breaks below the 200 EMA, the next key support lies near the 100 EMA around $2,250. This would erase recent gains and potentially trigger further declines. The $2,250 zone is also a significant psychological level, and a breach here could lead to even steeper losses.

Technical indicators offer little optimism. The RSI is trending sideways in a neutral zone, suggesting a lack of conviction from both buyers and sellers. However, with declining volume and momentum, bears may soon take full control.

Unless a surge in demand reverses the current trajectory, Ethereum may be on track to test lower support levels and face an extended correction. Traders and investors should closely watch the $2,250 level, as the next few days could be pivotal in determining ETH’s medium-term trend.

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