Ethereum is under pressure as it trades near the $2,490 zone, showing clear signs of weakening momentum after a sharp rally earlier in the week. The price had surged from below $2,000 to a local high of $2,737 but has since struggled to sustain gains, with sellers stepping in near a major resistance band between $2,600 and $2,750.
In the weekly chart, ETH regained the 0.236 Fibonacci level at $2,027 and reached as high as the 0.382 Fibonacci level at $2,424. Yet, this move triggered resistance, as the current weekly candle shows a long upper wick, showing that buyers are hesitant. Since this zone ($2,400–$2,500) was vital for consolidation in 2023, it is still a significant pivot point for the market.
The increased volume from the bullish move above the trendline caused the price to rise, yet it could not sustain above $2,600. Prices were rejected above the Fib 0.5 level on May 14 and 15, returning ETH to a limited price range. Unless activity picks up soon, Ethereum may continue to fall.
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Crucial Support Under Pressure as Indicators Flash Caution
On the 4-hour chart, ETH has broken below the 20-EMA at $2,553 and is now hovering just above the 50-EMA at $2,450. This short-term support area is closely watched, as a clean break below it could signal a deeper retracement. A descending triangle pattern has also formed, further hinting at bearish pressure.
Source: Tradingview
Meanwhile, technical indicators lean toward weakness, with the 30-minute RSI showing a bearish bias at 37.96. The MACD is still below its signal line, with the histogram staying flat, giving no clear indication of a reversal. Moreover, ETH is trading below the Ichimoku Cloud and Tenkan-Sen, suggesting a higher risk of going down over the following few trading periods.
Should Ethereum break below $2,450, the following primary levels are at $2,300 and $2,265, key points on the 100-EMA and an earlier area where it broke out. If bulls manage to retain this level, there is a possibility of a rise toward $2,600 and $2,745 afterward.
Ethereum’s price is still unstable as May 18 approaches, with the key support of $2,450 being tested. Traders must keep an eye on this level because it can decide whether ETH goes on a new rise or triggers a more significant fall.
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