Ethereum Slides as Bitcoin Break Sparks Broader Sell-Off

Hello traders, in today’s technical analysis, I’d like to shift the spotlight to Ethereum, which—like its bigger sibling Bitcoin—has found itself under increasing bearish pressure.

We recently discussed the situation on Bitcoin, highlighting the possibility of a larger drop due to a head and shoulders pattern forming on the chart. That scenario played out yesterday, with Bitcoin sliding sharply. Ethereum, naturally correlated, followed suit with a decisive bearish candle on the daily chart, marking its lowest close since May 19.

The current bearish momentum in Ethereum can be traced back to a false breakout above $2,700. That move formed a classic shooting star candle—highlighted on the chart with orange—and sent a clear signal of rejection from higher levels. This false breakout continues to cast a shadow on sentiment, reinforcing resistance at that level.

As of now, Ethereum is hovering just above the next key support zone, defined by the black horizontal line around $2,400. We are witnessing a slight bounce off this level, which isn’t unusual after a steep drop. However, should the price break below this support decisively, it would confirm the negative outlook and likely trigger further selling pressure.

Traders should keep a close eye on the $2,400 zone. A sustained hold above it could offer temporary relief or even set up a short-term rebound. But any daily close below this mark will be a firm confirmation that the bears remain in control, and we may see Ethereum push deeper into correction territory.

Source: https://www.axiory.com/analytics/technical-analysis/ethereum-slides-as-bitcoin-break-sparks-broader-se