Ethereum Price Slumps Below $2,500 Amid Fading Momentum and Pre-Event Jitters
Ethereum's price took a significant hit, falling to around $2,475 after failing to sustain a breakout above $2,600. The token's decline was accompanied by a sharp rejection of its previous move, leaving it vulnerable to further weakness and leveraged volatility.
Crypto trader Daan Crypto Trades attributed the move to pre-positioning ahead of the U.S. Senate's CLARITY Act vote and the Federal Open Market Committee meeting. The analyst noted that traders were reducing risk before events that could impact monetary policy and digital-asset regulation, with failure to advance the bill potentially leading to another decline.
The 4-hour chart shows Ethereum moving below the Bollinger Band midpoint at $2,509.64, placing it close to its first immediate volatility support. A break below this level would expose recent intraday lows and the $2,450 area, while buyers would need to recover the midpoint before attempting another move toward the upper Bollinger Band at $2,549.86.
The daily indicators also show fading momentum, with the relative strength index dropping to 56.89 from its recent highs and sitting below its moving average of 62.14. Ethereum is not oversold, leaving room for further downside if sellers retain control.