Ethereum took a notable tumble today, sliding 10% to settle below the $2,500 mark, shaking the cryptocurrency landscape. This decline, seen on exchanges like Kraken, has sent ripples through the market, prompting cautious sentiment among traders and investors.
Bears in Control
Ethereum’s recent plummet below $2,500 has been a cause for concern. The digital asset, which had been trading above the $2,500 threshold, saw its value drop below $2,350, then $2,250, and finally touch the $2,120 zone. The steep fall has left Ethereum trading below the 100-hourly Simple Moving Average, a technical indicator that often signals bearish momentum.
“The current market conditions are less than ideal,” noted Clara Hensley, a crypto market analyst at DigiTech Advisors. “Ethereum’s drop below key support levels highlights the prevailing bearish sentiment and could spell further troubles unless we see a decisive reversal.”
The technical charts paint a similar picture. A key bearish trend line is forming, with resistance levels at $2,280, $2,340, and $2,400—obstacles Ethereum must overcome to regain upward momentum. This mirrors the challenges faced by other cryptocurrencies, as detailed in our analysis of Ethereum and Solana meme coins.
Glimmers of Hope?
Despite the downturn, there’s a glimmer of hope for Ethereum enthusiasts. The price has managed to climb above the 23.6% Fibonacci retracement level of the recent downward move from the $2,568 swing high to the $2,114 low. If Ethereum can muster the strength to breach the $2,320 resistance zone, we might witness a fresh rally.
“Ethereum could potentially stage a comeback if it can break above the $2,400 resistance,” explained Julian Park, a blockchain strategist at Crypto Insights. “A move past $2,500 could even see it challenging the $2,620 level, but that’s a big ‘if’ given the current market dynamics.” As explored in our recent coverage of whales and new investors driving Ethereum’s price, market dynamics are crucial in determining the asset’s trajectory.
The Road Ahead
The path forward for Ethereum is fraught with obstacles and opportunities. If it fails to overcome the immediate resistance at $2,340, further declines could be on the horizon. Support levels at $2,200 and $2,150 are crucial in preventing a deeper slide toward the $2,000 mark.
The bearish tone is reinforced by the hourly MACD, which shows momentum gaining in the bearish zone, and the RSI, which is languishing below the 50 mark.
Market participants are keeping a close eye on these levels, as a clear move below $2,150 could push the cryptocurrency further down the rabbit hole. The looming question is whether Ethereum can claw its way back from these lows or if it will continue its downward trajectory.
“The market is in a delicate balance,” remarked Hensley. “Investors are skittish, and any further negative developments could exacerbate the sell-off.”
As we move through the latter part of June 2025, Ethereum’s performance will be pivotal not just for those directly invested in it but for the broader cryptocurrency market, which often mirrors Ethereum’s movements. The coming days will likely be telling as traders look for signs of recovery—or further decline.
Source
This article is based on: Ethereum Price Slides 10% — Market Sentiment Turns Cautious
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
