Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is once again at a crucial price level as recent gains begin to fade. After briefly pushing above the $2,800 level earlier this week, ETH encountered strong resistance and has since pulled back, currently trading around $2,500. Traders and analysts are now watching closely to see whether buyers can hold critical support levels or if a deeper correction is imminent.
On June 12, Ethereum surged to a local high near $2,875, pushing optimism among bulls and igniting discussions about a potential return to $3,000. However, the breakout attempt failed, and ETH faced a swift rejection, falling back into its previous range.
At the time of writing, Ethereum is down nearly 9% over the past 24 hours and is trading near $2,511. The sharp move lower has erased the recent gains and returned the asset to a more cautious technical zone.
This pullback comes amid increased market volatility driven by broader economic pressures and geopolitical uncertainty. Despite the setback, Ethereum continues to show some resilience, particularly when assessed on a larger timeframe.
On the 4-hour chart, Ethereum remains within an ascending channel, although its momentum has weakened. The area between $2,700 and $2,750 previously acted as a support-resistance flip zone, and price action is once again testing this level. The failure to stay above $2,800 now places more pressure on bulls to defend these lower levels.
Technical indicators currently present mixed signals. The Relative Strength Index (RSI) has dropped to a neutral zone, hovering around 50. This shows indecision among market participants. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is signaling bearish momentum, with a potential crossover forming that could lead to further downside if confirmed.
If Ethereum fails to hold the $2,700–$2,600 region, it may open the door to another test of the $2,500 support zone. A breakdown below this level could threaten the current bullish structure and cause increased selling pressure.
Zooming out to the daily chart, Ethereum remains above its 50-day and 100-day simple moving averages (SMA), which currently rest around $2,325 and $2,647, respectively. However, it is now struggling to stay above the 200-day SMA, a key technical indicator located near $2,768.
ETH’s daily RSI has cooled off from overbought conditions but remains above the 50 level. This suggests the asset still holds some bullish potential, although the momentum has clearly slowed.
Volume indicators show consistent trading activity, with no significant spike in sell-side volume. This indicates that long-term holders are not yet exiting their positions in large numbers.
Should Ethereum manage to reclaim $2,800 and flip it into a stable support level, the path toward $2,950–$3,000 could reopen. Until then, the asset remains in a neutral-to-bearish stance in the short term.
Ethereum’s current performance is unfolding in a broader economic environment filled with uncertainty. The upcoming Federal Reserve interest rate decision on June 18 has already introduced hesitation among traders. Concerns over inflation, rising Treasury yields, and global conflicts continue to keep risk assets—including cryptocurrencies—on edge.
Despite this backdrop, Ethereum has managed to outperform many altcoins, retaining relative strength across multiple timeframes. Some analysts believe this shows growing market confidence in Ethereum’s long-term value, especially with the increasing adoption of Ethereum-based Layer 2 networks and institutional interest in Ethereum exchange-traded funds (ETFs).
M-log1, a well-known crypto analyst, noted, “Ethereum is still structurally strong. If bulls can flip the $2,800 level into support, we could see altcoins regain momentum as well. But failure to hold above $2,700 would place Ethereum in a more vulnerable position.”
Ethereum is now in a make-or-break zone. If bulls can reclaim $2,800, confidence will likely return to the market, and ETH could resume its upward move toward $3,000. On the flip side, failure to hold above the $2,700 mark may push the asset back to its previous support at $2,600 or even $2,500.
Key levels to watch in the coming days include:
Support zones:
$2,700 – Immediate support
$2,600 – Critical support zone
$2,500 – Potential breakdown level
Resistance zones:
$2,770–$2,785 – Near the 200-day SMA
$2,800–$2,830 – Strong resistance and prior rejection zone
$2,950–$3,000 – Next target if breakout occurs
Ethereum remains in a relatively healthy technical structure, but the recent failure at $2,875 and the return to a lower trading range has raised concerns. Traders will be watching closely over the next few days to see whether buyers step in with enough conviction to reclaim lost ground.
With the Federal Reserve decision looming and geopolitical tensions rising, volatility is expected to remain high. Ethereum’s ability to withstand these pressures while maintaining key support levels will be critical for determining its short-term direction.
For now, Ethereum’s fate hangs in the balance, with both bulls and bears preparing for the next major move.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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