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▲ Ethereum (ETH), Cryptocurrency decline/AI-generated image
U.Today reported on May 12 that Ethereum (ETH) is in a precarious situation after failing to break through key technical resistance. Currently, ETH is showing narrow range movement in the mid-$2,300s. Market patience has reached its limit, and fear of further declines is spreading.
The 100-day exponential moving average is acting as a strong ceiling, preventing price increases. Since the sharp drop in February, ETH has attempted several rebounds but failed to break through the 100-day exponential moving average resistance. Repeated failures to break through signify weakening buying pressure. Traders are questioning whether the recent recovery is merely a technical bounce.
From a long-term perspective, ETH appears structurally more vulnerable than Bitcoin (BTC). The lack of accompanying trading volume during the recent price stagnation is also a concern. The Relative Strength Index (RSI) remains at a neutral level, showing no upward momentum. Given Ethereum's characteristic sensitivity to overall market sentiment, downward pressure could intensify.
The main support level currently watched by the market is the $2,250 to $2,200 range. If this range breaks, the price could quickly fall to the psychological support level of $2,000. $2,000 is considered a critical boundary for re-entering a bear market. If macroeconomic data releases coincide with a slowdown in BTC's momentum, the pace of decline is expected to accelerate.
Ethereum remains in a phase of energy accumulation, just before an expansion of volatility. Investors are taking a conservative stance, observing whether the $2,200 support holds. The longer the failure to break resistance continues, the more intense selling pressure is likely to become.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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