Ethereum failed to hold above $2,365 and reversed course, sliding below $2,350 and $2,340. The drop accelerated after a breakout below a bullish trend line on the hourly chart, according to NewsBTC. Bears pushed the price under the 50% Fibonacci retracement level of the recent rally from $2,265 to $2,382.
The breakdown signals a shift in momentum on short-term timeframes. Sellers are defending the $2,400 zone, which has acted as a resistance barrier. ETH now trades below the 100-hourly Simple Moving Average, a technical indicator that often marks a bearish tilt when price sits beneath it.
The $2,300 level has emerged as a near-term support, drawing buyer interest. If that floor holds, Ethereum may attempt a recovery toward immediate resistance at $2,340. A more significant hurdle sits near $2,400, where previous rejection occurred.
Further downside could follow if the $2,300 support gives way. NewsBTC noted the pair, as tracked on Kraken, may continue to decline as long as it remains under $2,350. A break below $2,300 would expose lower targets.
Counter-argument: Some traders view the pullback as a healthy retracement within an uptrend, with the $2,265 low still intact as a potential launchpad.