Ethereum, Massive Sell-Off Triggered... Whales Begin to Exit After Failing to Break $2,400

▲ Ethereum (ETH)

As Ethereum (ETH) once again failed to break the $2,400 resistance, downward pressure is increasing, and investor anxiety is spreading.

Crypto news outlet NewsBTC reported on May 12 (local time) that Ethereum's price encountered strong selling pressure near $2,400, halting its upward momentum. The price recently tested the resistance zone between $2,380 and $2,400 but failed to break through, entering a correction phase. Having fallen below the key support level of $2,350, a short-term downtrend is currently dominant.

Ethereum is currently trading below its 100-hour Simple Moving Average, signaling bearish sentiment. A short-term bullish trend line has formed near $2,320, testing its support. If this support breaks, the price could gradually decline to $2,250 and $2,200. The Relative Strength Index (RSI) has also fallen below neutral, indicating weakened buying momentum.

To the upside, $2,380 acts as the first resistance level, and only by surpassing this zone can Ethereum challenge the $2,400 mark again. Beyond being a mere price point, $2,400 is a critical turning point that determines market sentiment. Analysts anticipate that a thick sell-off wall has formed in this area, making a breakthrough difficult without substantial trading volume.

If Ethereum successfully breaks and stabilizes above the $2,400 resistance, the next target prices are expected to be $2,450 and $2,500. Conversely, if it fails to defend the support level, there is a risk of a deeper decline as disappointed investors offload their holdings. Market participants are paying close attention to Ethereum's volatility, which is correlated with Bitcoin (BTC)'s movements, and are maintaining cautious positions.

Currently, Ethereum remains in a phase of exploring its direction and consolidating energy. Whether it reclaims $2,400 is considered the most crucial indicator that will determine the price trend for the coming weeks. Attention is focused on how changes in market liquidity and macroeconomic variables will affect Ethereum's breakout from its current range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*