Ethereum Dips Below Key Support as Bears Regain Short-Term Control

• Ethereum slips back below $2,560 after rejection at the $2,610 resistance, breaching short-term trendline support.
• Indicators signal bearish momentum as RSI confirms divergence and MACD remains in negative territory across intraday charts.
• Market sentiment turns cautious with reduced volume and fading open interest, while support at $2,515 becomes the next key level to watch.

Ethereum’s price action took a bearish turn today after failing to sustain its recent gains above the $2,600 mark. The asset briefly touched $2,610 earlier in the week but has since reversed, slipping back into the $2,550–$2,560 range.

Price action on lower timeframes confirms a breakdown below a rising trendline that had supported Ethereum since late June. The violation has set the stage for a fresh selling influence, smashing ETH under important intraday support and subjecting the short-term bullish structure to pressure.

Importantly, in the 4-hour chart, Ethereum is unable to remain above 2,560. It had previously tried to clear up resistance at $2,610, an area in which price action has repeatedly declined since June 15th. This constant failure makes it a vital supply location.

Also Read: Top Crypto Trader Shares ‘Realistic Price Target’ for XRP, SUI, ONDO, SOL, Others

Rising Volatility and Weak Momentum Add to Downside Pressure

Ethereum remains inside a symmetrical triangle pattern on the daily chart, with its apex drawing closer. Current price levels are hovering near the lower boundary of this formation, and further weakness may lead to a test of support around $2,440.

Technical indicators indicate growing selling energy. In the 30-minute chart, the RSI has dropped back to 35.6, which validates the bearish divergence. MACD stays in negative values, indicating a drop in bullish momentum.

Moreover, VWAP indicates that there is a level of movement in a price that is lower than the average session of $2,576. DMI indicators have turned negative, and an up-trending ADX confirms an escalating downtrend. The premises bring out temporary weakness.

Reflecting waning trader sentiment, the derivative data on Ethereum shows a 20.60% drop in trading activity and a 2.24% decline in open interest, indicating weakening conviction on both sides of the market.

Long liquidations have surpassed shorts, which means that bulls are being forced to get out of positions.

Bollinger Bands in the 4-hour chart are expanding, which is an indicator of higher volatility. ETH has already dropped below the mid-band level to close at $2,560, paving the way for a possible downswing to the lower band level at $2,515.

On the same graph, exponential moving averages are also separate. Although the ETH is trading above the 20 and 50 EMAs, the cryptocurrency has begun to close below the 100 EMA at $2,482, serving as an early momentum indicator to favor sellers.

On-chain data presents a neutral picture, as Binance’s funding rate remains slightly positive at 0.0038% and the long/short ratio at 1.34 indicates a market still leaning long. Nonetheless, failure to break above the $2,610 mark raises concerns among traders.

Key Levels to Watch as Ethereum Faces Pivotal Technical Test

If Ethereum fails to reclaim the $2,570–$2,580 area soon, bears may target immediate support at $2,515. Below this, the next demand zone lies around $2,440, supported by Fibonacci and trendline confluence. A bounce in that area could temporarily stall further downside.

On the upside, the price would need to be recaptured at $2,580 to invalidate the current breakdown. Resistance remains firm at $2,610 and $2,645. A clear break above these levels is required to restore bullish momentum in the near term.

Funding data, bearish indicators, and structural breakdowns suggest a cautious approach from market participants in the short term.

Also Read: Analyst Charts XRP Path to €702, But it Will Touch These Prices First

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