The post Will ETH Retest the $2K Support as Momentum Fades? Ethereum Price Analysis appeared on BitcoinEthereumNews.com.

Ethereum continues to face strong resistance near the critical 200-day moving average at $2.7K, with recent price behavior hinting at a potential bearish reversal. The lack of sustained buying momentum suggests that a prolonged consolidation phase, possibly extending down toward the $2.2K support zone, is increasingly likely in the mid-term. Technical Analysis The Daily Chart ETH continues to struggle below the critical 200-day moving average, currently positioned around the $2.7K mark. This level has consistently acted as a ceiling over recent weeks, signaling a firm zone of selling pressure and hesitation among buyers. The failure to reclaim this key threshold has led to signs of weakness, as the price begins to form a distribution range, hinting at a potential corrective move. Given the lack of strong bullish momentum, a gradual decline toward the $2.2K support appears increasingly likely in the coming sessions. This zone may serve as a demand pocket, offering the market a reset opportunity before attempting another breakout above the $2.7K barrier. However, should sellers gain further control, Ethereum could even retest the 100-day MA near $2K as the next line of defense. The 4-Hour Chart On the lower timeframe, Ethereum is trading within a rising wedge formation, typically a bearish reversal pattern, indicating fading buyer strength and heightened risk of a downward breakdown. This structure aligns with visible bearish divergence on the RSI indicator, reinforcing the view that distribution is underway near the current resistance. A breakdown below the wedge’s lower boundary, currently around $2.4K, would likely open the door to a drop toward the $2.2K zone. Conversely, if Ethereum unexpectedly breaks above the upper boundary, a rapid short squeeze could unfold, potentially propelling the price toward higher resistance levels in a sharp recovery move. On-Chain Analysis Ethereum’s price continues to fluctuate just beneath a key resistance…

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Filed under: News - @ June 1, 2025 2:26 pm