Ethereum Price Volatility: Breakout Vulnerable as Short-Term Momentum Fades

Ethereum's price has recovered above $2,400 after falling to $2,370 on September 3. Despite this rebound, short-term momentum remains bearish, and nearby liquidation clusters threaten the breakout.

The 4-hour relative strength index (RSI) stands at 43.86, below the neutral 50 level. This suggests that Ethereum's price is still vulnerable to a decline.

However, the daily chart retains its bullish structure, with Ethereum trading above both its 50-day and 200-day simple moving averages. The 50-day average has also moved above the 200-day line, forming a bullish crossover.

The wider risk sentiment remains fragile due to renewed tensions between the US and Iran, which pushed Brent crude prices to a six-week high of $97.39 on September 3. Additionally, markets are preparing for the Federal Reserve's September 16 decision, with rate expectations shifting rapidly.