In this week's sharp rally, Ethereum (ETH) briefly hit a local high of $2,623 before retracing to around $2,445. This bullish breakout is now showing signs of correction, with sellers testing a newly formed key support level near $2,420. Positioned above the 38.2% Fibonacci retracement level ($2,424) on the weekly chart, this support zone is critical for maintaining ETH’s upward trajectory.
Ethereum Price Forms Bullish Flag Pattern Amid Correction
The 4-hour chart reveals a bullish flag pattern—a continuation signal following ETH’s surge from $2,100 to $2,600. Currently, the price is correcting within the flag channel, trading near its lower boundary. If buyers defend the $2,420–$2,430 support (aligned with EMA20 and Bollinger Band’s lower band), a breakout could propel ETH toward $2,550–$2,600.
The short-term pullback is expected after ETH’s parabolic run. The RSI (43–45) on 30-minute and 4-hour charts indicates neutral-to-slightly bearish sentiment. However, a rebound above RSI 50 and stabilizing MACD histogram could signal momentum reversal, easing bearish pressure.
👉 How to trade Ethereum’s bullish flag pattern
Why Is Ethereum’s Price Dropping Today?
Today’s dip stems from technical factors on lower timeframes. After its May 8–11 rally, ETH faced strong resistance near $2,600, triggering minor profit-taking. The $2,555–$2,600 zone (a prior liquidity area on 30-minute charts) remains a stubborn barrier, dictating whether ETH resumes its uptrend or breaks below $2,420.
The broader daily chart shows ETH has cleared a major descending trendline from $1,940. Yet, narrowing Bollinger Bands on 4-hour frames suggest reduced volatility short-term.
Short-Term Outlook: Can ETH Retest $2,600?
As long as ETH holds $2,420, bulls retain control. A flag breakout may reignite a rally toward $2,555, then $2,600. The next major target is $2,745 (50% Fibonacci level). Conversely, losing $2,420 support could open the door to $2,300 or even $2,246 (EMA50).
Traders should watch for volume-confirmed breakouts near $2,460–$2,480. Weak momentum might deepen corrections toward $2,071 (EMA100).
Ethereum Price Forecast Summary
| Metric | Value / Signal |
|---|---|
| Current Price | $2,445 |
| Key Resistance | $2,555, $2,600, $2,745 |
| Key Support | $2,420, $2,300, $2,246 |
| RSI (4H) | 43.2 (Neutral) |
| MACD (30min) | Fading bearish crossover |
| Pattern | Bullish flag forming |
| Short-Term Bias | Sideways-to-bullish |
FAQs
Q: What’s driving Ethereum’s price correction?
A: Profit-taking near $2,600 resistance and lower timeframe technical pullbacks.
Q: Is Ethereum still bullish long-term?
A: Yes, provided it holds $2,420 support. Clearing $2,745 would confirm a broader trend reversal.
Q: Should I buy ETH now?
A: Monitor the $2,420–$2,430 support. A rebound with rising volume could signal a buying opportunity.