Ethereum prices today are trading at around $2,445, and the sharp surge earlier this week marked ETH local high of $2,623. After this bullish breakout, the market shows signs of consolidation as sellers test the newly formed support for around $2,420. This level is just above the 38.2% Fibonacci retracement ($2,424) on the weekly chart. This is a critical zone to maintain an upwardly Ethereum price action.
ETH/USD price dynamics (Source: TradingView)
From a weekly standpoint, Ethereum surpasses both the 23.6% and 38.2% retracement levels, indicating a structurally bullish recovery from the March lows of nearly $1,385. However, to see a broader trend reversal, it will require a critical move above the 50% zone at $2,745.
Ethereum price action faces pullbacks of bullish flag formation
ETH/USD price dynamics (Source: TradingView)
On the four-hour chart, Ethereum appears to form a bullish flag. This is the continuation pattern after a vertical movement of between $2,100 and $2,600. Prices are currently being revised within the downward channel and are trading near the lower limit. If Bulls defended a support cluster of $2,420-$2,430 (matching EMA20 and Lower Bollinger Band), we saw a continuation of breakouts to $2,550 and $2,600.
ETH/USD price dynamics (Source: TradingView)
This short-term fix is not unexpected after the recent spike in Ethereum prices. The RSI of the 30-minute and 4-hour chart floats near 43-45, suggesting a neutral to slightly bearish bias. However, if the RSI returns above 50, momentum reversal can occur quickly. The MACD histogram has flattened, indicating that bearish pressure is waning for now.
Why are Ethereum prices falling today?
ETH/USD price dynamics (Source: TradingView)
The answer to why Ethereum prices are falling today is fatigue in lower time frames. After the parabolic rally from May 8th to 11th, ETH faced overhead resistance at $2,600, causing mild benefits. The price also responds to a red zone of around $2,555-$2,600, which is in line with previous liquidity pockets found on the 30-minute chart. This area remains stubborn resistance and could define whether ETH continues higher or below $2,420.
ETH/USD price dynamics (Source: TradingView)
The broader structure of the daily chart shows that ETH exceeds the major downtrend breakout levels of nearly $1,940, which were recovered last week. That said, Bollinger Band has begun signing for a four-hour time frame.
Short-term outlook: Can ETH prices be retested at $2,600?
ETH/USD price dynamics (Source: TradingView)
As long as the ETH exceeds $2,420, the bull will retain the advantage. A bullish breakout from the descending flag could lead to $2,600 following a $2,555 retest. Beyond that, the next key target is at $2,745 (FIB 0.5 level). On the downside, a breakdown below $2,420 will open $2,300, and the door to the $2,246 (EMA50) zone.
Traders should be aware of breakouts from the flag structure and volume checks of near $2,460-2,480. If momentum fails, Ethereum may follow its EMA100 ($2,071) as a deeper retest.
Ethereum price forecast table
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