Ethereum has fallen to $2,645, extending a steady decline that has now erased over 31% from its quarterly high. The price is approaching a critical level at $2,610, which marks a full 100% Fibonacci retracement of its previous rally. This support zone is viewed as a potential inflection point. A sustained hold above it may encourage stabilization, while a break lower could lead to further losses.
The move follows broader weakness across the crypto market earlier this week. A sharp selloff in Bitcoin triggered over $500 million in liquidations and weighed on Ethereum, which fell below the $2,800 mark amid declining sentiment. At the same time, macro uncertainty and falling equities added to the pressure.
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Indicators Show Oversold Conditions
Technical signals are now pointing to oversold conditions. The RSI(14) has dropped to 32, with the RSI(7) falling further to 24, both suggesting the selling momentum has stretched near-term limits.
Ethereum is also trading at the lower edge of its Bollinger Bands, which often reflects temporary price extremes. Despite that, the ADX has climbed above 30, indicating that bearish momentum remains strong and well-established.
Traders are watching whether this mix of signals leads to a short-term rebound or deeper correction. The presence of oversold signals doesn’t always trigger a reversal – especially when downward momentum is still rising.
Read also: From Panic to Peak: Ethereum’s 2025 Story
Outlook and Considerations
Ethereum’s near-term direction hinges on the $2,610 support level. Technical indicators point to a stretched move, but momentum remains negative – the current setup shows a market under pressure, with limited support below current levels if this key zone fails.
