ETH slides below $2,500 as a failure of bear pressure-raising scrap

Today’s Ethereum prices have fallen by around 2%, close to $2,478 over the past 24 hours. Despite holding ETH beyond the support zone last May, the latest candle formation and volume flow suggests new sales interest. This move has raised concerns about the near-term negative risk, especially as indicators are consistent with weakening the momentum stage.

Ethereum Price Action: A collapse below $2,500 causes a bearish reversal

Ethusd Price Analysis (Source: TradingView)

Ethereum price action fell below the key ascending trendline that had been supporting rally since early May. On the 30-minute and 4-hour charts, ETH is broken below the $2,500 threshold, creating a lower tier than the $2,560 rejection zone.

The move saw a potential breakdown from the rising wedge pattern, and after multiple failed attempts to break $2,580, the sellers regained control. The $2,560-$2,600 red resistance zone now serves as a solid ceiling, but Eth is seeing a retest of horizontal support of $2,445 and $2,420.

RSI and MACD promote bearish momentum

Ethusd Price Analysis (Source: TradingView)

The 30-minute chart RSI slipped to 28.8, entering the territory that was oversold for the first time in several sessions. This sudden drop in RSI reflects a surge in Ethereum price volatility, which has overwhelmed buyers during the day after a breakdown.

The MACD indicator, on the other hand, shows a clear bearish crossover. Both the MACD line and the signal line are facing downwards and are supported by expanding the red histogram bar. This shift reinforces the narrative of a bearish wave building below the $2,500 threshold, especially as ETH struggles to regain previous support.

On the other hand, Bollinger’s bands show weakness in trends

Ethusd Price Analysis (Source: TradingView)

The unsolved cloud indicators on the 30-minute and 1-hour charts show that today’s Ethereum prices are trading under a cloud-based market, with the Tenkansen and Kijunsen lines crossing badly. The price structure remains under the baseline (Kijun), suggesting further weakness unless the ETH recovers quickly beyond $2,500.

Ethusd Price Analysis (Source: TradingView)

The Bollinger band on the 4-hour chart is also expanding as ETH touches the low band, close to $2,480. This indicates an increase in volatility and increased likelihood of follow-through sales if the Bulls are unable to generate bounces immediately. The $2,535 middle band and the nearly $2,583 upper band now represent stiff short-term resistance levels.

Weekly Fibonacci and daily trendlines show a mixed long-term setup

Ethusd Price Analysis (Source: TradingView)

Zooming out, the weekly Fibonacci retracement shows that ETH is trading at 0.5 level for $2,745 and is struggling to surpass 0.382 level. From $2,420 to $2,745, this Fibonacci zone is important for defining a wider bias. Below $2,420, the bullish paper is invalidated and opens the door for a test at the 0.236 level, close to $2,027.

Ethusd Price Analysis (Source: TradingView)

On the daily charts, Ethereum rejected the upper limit of the downtrend line connecting the $3,000 and $2,800 peaks in March and April. Unless ETH recovers a $2,600 pivot over $2,560, the bigger structure will be bearish.

Ethereum price forecast for May 26th

Ethusd Price Analysis (Source: TradingView)

If Ethereum prices are not closed beyond $2,500, the downside trajectory could continue to be $2,445 and $2,420. A deeper selling could reveal support bands ranging from $2,300 to $2,260. This coincides with the 200 EMA and key confluence zone seen at the beginning of May.

The advantage is that approaching recovery of $2,540 and $2,560 will change feelings in the favor of buyers, with the next resistance coming in April highs at $2,600 and $2,733. However, due to the weakening momentum and the structure is not retained, traders may approach bounce attempts with caution.

Unless the Bulls quickly recover control beyond the $2,500 level, Ethereum risks slipping into a further corrective phase. The next 24 hours are important in defining whether this movement is a failure or another pullback within a wider accumulation range.