Ethereum has faced rejection from the critical resistance level of $2,550 in the past 24 hours, leading to a new price decline. This situation raises questions about the cryptocurrency's future trajectory.
Key Technical Points
• Resistance at $2,550: Confluence of 0.618 Fibonacci retracement, POC, and HTF resistance. • Market Structure Break: New local low formed, suggesting potential SFP setup. • Next Support at $2,220: Unfilled fair value gap and HTF demand zone.
Current Market Situation
The $2,550 resistance level has been tested and rejected multiple times over the past 7 to 10 days. This level carries significant technical weight due to the alignment of the POC and the 0.618 Fibonacci retracement, making it a structurally dense zone that must be cleared for bullish momentum to continue.
The latest drop has resulted in a clear break of short-term structure, forming a new local low. While such movements can sometimes precede a swing failure pattern, current volume data does not support this outcome. Without an influx of buying pressure, the likelihood of further downside increases.
What to Expect in the Near Future
Ethereum is likely to remain range-bound between $2,550 and $2,220 unless a decisive break, confirmed by rising volume, resolves the current standoff. If resistance holds and momentum continues to fade, traders should prepare for a move toward the lower boundary of the range. A confirmed reclaim of $2,550, however, would shift the bias back toward bullish continuation.
The current situation with Ethereum indicates uncertainty and the possibility of movement within the established range. Successfully breaking the $2,550 level could change the trajectory, however, otherwise a decline towards the $2,220 support is expected.
