Ethereum Price Falters: Is a Major Correction Imminent?
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Ethereum's price is teetering at a crucial juncture after a failed breakout above $2,770, retracing significantly from recent highs near $2,830. This drop follows heightened volatility in the broader market triggered by geopolitical tensions, particularly the conflict between Israel and Iran. Analyst Big Cheds observes a “pre-tower top” formation on the weekly chart, characterized by small bodies and upper shadows, suggesting indecision and potential weakness. This pattern often precedes significant price swings. The $2,800 level is now a critical resistance for bulls to reclaim; failure to do so could lead to a deeper correction towards the $2,500-$2,550 support zone, potentially even reaching the 50-day moving average around $2,380. The situation is further complicated by macroeconomic factors such as rising US Treasury yields, adding to the overall risk-off sentiment. While some believe a decisive break above $2,800 could spark the next altcoin season, others remain cautious, citing weakening momentum and global instability as warning signs of a potential downturn. The current price action reflects a battle between buyers and sellers, with the outcome dependent on whether bulls can regain control above the key resistance levels or bears push the price further down into established support zones. Ethereum's price remains structurally intact within its trading range since early May, but the short-term trend hinges on the next few days' price action and the ability of bulls to re-establish momentum. High volume during the recent sell-off underscores significant bearish pressure. A decisive break below $2,500 would strengthen the bearish outlook, while reclaiming the $2,650-$2,770 resistance zone would signal renewed bullish strength.
