Ethereum Price Alert: Bearish Signals Flash Warning — Is a Sharp Pullback Imminent?

Ethereum's bulls are sweating as the charts turn red. The second-largest crypto by market cap just printed its most ominous technical setup since the 2022 bear market—and leveraged longs are getting liquidated by the minute.

Key levels to watch: The $3,400 support zone that's held since May just got shattered like a DeFi protocol with unaudited code. If ETH can't reclaim this level within 48 hours, traders are bracing for a potential 18-22% drop toward the next major support cluster.

Silver lining? Network fundamentals remain strong—gas fees hover near yearly lows while active addresses hit a 90-day high. Typical Wall Street behavior: punishing the asset with actual utility while memecoins pump. The correction, if it comes, might just be the buying opportunity ETH maximalists have waited for.

Ethereum Price Dips Below Support

Ethereum price started a fresh increase above the $2,320 support level, like Bitcoin. ETH price was able to clear the $2,350 and $2,450 resistance levels to move into a positive zone.

The bulls even pushed the price above the 76.4% Fib retracement level of the downward MOVE from the $2,569 swing high to the $2,115 low. However, the bulls were active above the $2,500 level. A high was formed at $2,520 and the price is now correcting some gains.

There was a move below the 23.6% Fib retracement level of the upward move from the $2,114 swing low to the $2,520 high. Besides, there was a break below a connecting bullish trend line with support at $2,450 on the hourly chart of ETH/USD.

Ethereum price is now trading above $2,400 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance NEAR the $2,500 level. The next key resistance is near the $2,520 level.

The first major resistance is near the $2,550 level. A clear move above the $2,550 resistance might send the price toward the $2,600 resistance. An upside break above the $2,600 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,720 resistance zone or even $2,800 in the near term.

More Losses In ETH?

If ethereum fails to clear the $2,520 resistance, it could start a fresh decline. Initial support on the downside is near the $2,400 level. The first major support sits near the $2,320 zone.

A clear move below the $2,320 support might push the price toward the $2,250 support. Any more losses might send the price toward the $2,200 support level in the near term. The next key support sits at $2,150.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,320

Major Resistance Level – $2,520