Ethereum Momentum Stalls: Traders Brace for Potential Downturn

The bullish momentum for Ethereum (ETH) has hit a significant roadblock, as the asset fails to sustain its position above the $2,120 resistance level. Market analysts are now observing a notable softening in buying pressure, prompting a more cautious outlook among crypto traders.

Resistance and Support Hurdles

Ethereum's recent attempt to extend its gains mirror the fragility seen in the broader market. After failing to clear the $2,120 zone, ETH underwent a downside correction, breaking below the critical $2,110 and $2,100 support levels. The price is currently trading below its 100-hourly Simple Moving Average, signaling that the bears have regained temporary control. A key bullish trend line was also breached at $2,105, further intensifying the short-term bearish sentiment. To regain a positive trajectory, Ethereum must decisively clear the $2,120 and $2,150 resistance zones. If successful, the asset could see a surge toward $2,220 or even $2,320. However, current technical indicators, such as the hourly MACD gaining momentum in the bearish zone and the RSI dipping below 50, suggest that the path of least resistance may currently be to the downside.

The Downside Risk

Should Ethereum fail to overcome the immediate resistance at $2,120, a fresh decline could be on the horizon. The first major support area to watch is the $2,060 zone, which aligns with the 61.8% Fibonacci retracement level of the recent upward move. A clear move below $2,060 could accelerate losses, potentially pushing the price toward the psychological $2,000 handle, with a secondary "floor" established near $1,940. For now, traders remain increasingly cautious, waiting for a definitive signal of either a bullish breakout or a deeper correction.