Ethereum’s Recent Gains in Danger – Brace for Another Potential Drop?

Ethereum's rally hits turbulence as technical indicators flash warning signs. The second-largest cryptocurrency faces mounting pressure that could erase recent progress.

Technical Breakdown: Support Levels Under Fire

Key support zones are being tested as selling volume picks up steam. Traders watch critical thresholds that previously sparked bullish reversals—now they're cracking under pressure.

Market Sentiment Shifts: From Greed to Caution

Fear creeps back into crypto markets as leveraged positions get liquidated. The 'buy the dip' crowd grows quieter while short sellers increase their bets against ETH's momentum.

Macro Factors Bite: Traditional Finance Plays Spoiler

Rising rates and risk-off sentiment hammer speculative assets—because nothing says 'stable store of value' like a 20% intraday swing before breakfast.

What's Next: Recovery or Rout?

All eyes watch whether Ethereum's ecosystem fundamentals can override technical weakness. Smart contract activity holds steady, but price action tells a darker story. The next 48 hours could determine whether this is a healthy pullback or the start of something uglier.

Ethereum Price Dips Again

Ethereum price started a recovery wave after it tested the $4,260 zone, like Bitcoin. ETH price was able to climb above the $4,320 and $4,350 resistance levels.

The price surpassed the 50% Fib retracement level of the key decline from the $4,660 swing high to the $4,261 low. However, the bears remained active NEAR the $4,480 resistance zone. There were two attempts, but the bulls failed to gain strength to clear $4,500.

The 61.8% Fib retracement level of the key decline from the $4,660 swing high to the $4,261 low is acting as a barrier. The price reacted to the downside below $4,450.

Ethereum price is now trading below $4,450 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance at $4,460 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $4,450 level. The next key resistance is near the $4,480 level. The first major resistance is near the $4,500 level.

A clear MOVE above the $4,500 resistance might send the price toward the $4,565 resistance. An upside break above the $4,565 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,650 resistance zone or even $4,720 in the near term.

More Losses In ETH?

If ethereum fails to clear the $4,500 resistance, it could continue to move down. Initial support on the downside is near the $4,375 level. The first major support sits near the $4,340 zone.

A clear move below the $4,340 support might push the price toward the $4,320 support. Any more losses might send the price toward the $4,260 support level in the near term. The next key support sits at $4,150.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,340

Major Resistance Level – $4,500