Ethereum Price Rejected Near $2,400 Again, Sellers Defend Key Barrier
12 May 2026 · 03:08 UTC · NewsBTC RSS Feed · Original source
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Summary
Ethereum started a downside correction from $2,380, now trading below the 100-hourly moving average and key support at $2,340. The price broke below a bullish trend line and declined through the 50% Fibonacci retracement level. Current price action shows ETH trading around $2,300, where major support is being tested. Bearish technical indicators include MACD gaining momentum below zero and RSI falling below the 50 zone. If support at $2,300 holds, Ethereum could attempt recovery toward resistance levels at $2,340, $2,365, $2,380, and $2,400, with potential gains toward $2,440-$2,450. If support breaks, the price could decline toward $2,265, $2,220, $2,200, and potentially $2,150. The article notes similar downside correction patterns in Bitcoin.
Why it matters
The article provides a detailed technical framework that traders will reference when monitoring Ethereum price action. Support and resistance levels act as self-fulfilling prophecies in crypto markets—traders place stop-loss and limit orders at these levels, creating real buying and selling pressure. The mention of MACD entering bearish territory and RSI falling below 50 signals loss of upside momentum, which typically precedes further downside movement. However, the article acknowledges multiple scenarios; if support holds and bulls defend $2,300, a relief rally is probable. The short-term bearish bias doesn't extend to longer timeframes because the article provides no weekly or monthly perspective, and single-day corrections are common. Bitcoin's correlated movement is mentioned but not quantified, limiting confidence in BTC-specific impact predictions. Crypto markets often front-run these technical analyses, potentially already pricing in the weakness discussed, which reduces future predictive impact.
Expected impact
The article signals near-term bearish pressure on Ethereum with technical support at $2,300 acting as a critical inflection point. In the coming hours, if ETH holds above $2,300, it could stabilize and attempt recovery toward $2,340-$2,365 resistance levels. However, if support breaks, cascading selling could push the price toward $2,265 and potentially lower levels at $2,220-$2,150. The bearish MACD and RSI below 50 suggest momentum favors sellers, but bounces are typical in downtrends. Bitcoin is likely to move in correlation with Ethereum's direction, though BTC's macro catalysts may decouple it from pure altcoin technical dynamics. This represents a technical confirmation of short-term weakness rather than fundamental deterioration, so recovery remains possible if broader market sentiment improves.