Ethereum Price Struggles to Rebound: Short-Term Forecast Remains Weak

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Ethereum Price Struggles to Rebound: Short-Term Forecast Remains Weak

Ethereum’s ETH $2 319 24h volatility: 0.7% Market cap: $278.77 B Vol. 24h: $13.07 B price remains under pressure, struggling to recover after dropping below key support levels.

With the cryptocurrency currently trading under $2,350, the short-term outlook is weak unless it can break through important resistance points.

Decline and Technical Resistance

Ethereum failed to clear the $2,450 resistance, triggering a drop below $2,400 and $2,350. The price briefly touched a low of $2,253 before attempting to consolidate. Despite a minor recovery above $2,285, Ethereum is still below the $2,310 mark and the 100-hourly Simple Moving Average (SMA).

Resistance is building around $2,300, with more significant barriers at $2,360, aligning with the 50% Fibonacci retracement of the recent drop from $2,466 to $2,253. Additionally, a bearish trend line on the hourly chart reinforces this resistance.

A break above $2,360 could push Ethereum toward $2,420, but failure to clear it may lead to further declines, with support at $2,265 and $2,250. A drop below $2,250 might bring the price down to $2,200 or even $2,150.

Photo: TradingView

RSI and MACD Indicators

Technical indicators suggest further bearish trends. The Relative Strength Index (RSI) for ETH/USD is below 50, showing weak buyer activity and signaling that sellers still control the market.

The Moving Average Convergence Divergence (MACD) also remains in the bearish zone, losing momentum, which further points to limited chances of a strong recovery unless Ethereum can break past these resistance points.

In the short term, Ethereum’s price outlook remains vulnerable to further declines unless it can surpass the $2,360 resistance. With bearish signals from both the RSI and MACD, the odds of a significant recovery are slim. If Ethereum fails to break higher, it could see additional losses, deepening the bearish trend in the market.

Analysts Weigh In on Ethereum’s Struggles

In addition to these technical challenges, market sentiment around Ethereum has weakened. The cryptocurrency is currently down about 50% from its all-time high of $4,800, and analysts believe that issues like poor network scalability are partly to blame for Ethereum’s ongoing struggles.

On-chain data shows that Ethereum whales, large holders of the cryptocurrency, have stopped buying and are selling off their holdings, adding to the downward pressure. Ali Martinez, a well-known on-chain analyst, emphasized that this whale activity is a key reason for Ethereum’s price weakness. He warned that if big investors don’t return, Ethereum’s price could drop even further.

Kyle Samani, a partner at Multicoin Capital, highlighted Ethereum’s interoperability and user experience issues. He explained that users are frustrated by slow transaction times, high fees, and difficulty in moving assets between platforms. These issues make Ethereum less competitive compared to other cryptocurrencies like Bitcoin BTC $59 245 24h volatility: 0.8% Market cap: $1.17 T Vol. 24h: $28.01 B and Solana SOL $132.8 24h volatility: 0.7% Market cap: $62.15 B Vol. 24h: $1.75 B .next

Ethereum Price Struggles to Rebound: Short-Term Forecast Remains Weak