Ethereum moved sideways in recent weeks, leaving traders wondering why momentum continues to stagnate despite multiple surges higher. According to an analysis shared by an analyst on X, the answer lies in a specific technical level that the asset possesses repeatedly failed to recover.
Ethereum’s $2,450 barrier
Ethereum’s recent price behavior can be attributed to market interaction with a resistance zone near $2,450. At the beginning of May, the analyst describe that this level functioned as a decisive confirmation point for the bullish continuation. The structure suggested that if Ethereum could rise above $2,450, even briefly, would signal that the breakout from the current range is real.
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In the chart shared at the time, the region around this price was highlighted as a critical recovery zone. The analysis argued that once the price crosses such a level, it becomes a strong directional signal for traders. Since the level did not have complicated confirmation requirements, even a quick move above it would have been enough to validate the bullish momentum.
However, until this threshold is crossed, the analyst has maintained a cautious stance. The reasoning was simple: markets often approach major breakout levels only to reverse if buying pressure can’t support the movement. The repeated hesitations around $2,450 suggest that the upward move could still fail if the market fails to overcome this obstacle.
This framework also closely ties the behavior of Ethereum to that of Bitcoin. The analyst mapped the $2,450 level on Ethereum as roughly equivalent to a key resistance zone around $81,000 on Bitcoin. If Ethereum confirmed a breakout above this point, it would likely boost confidence in the broader crypto market.
Rejection Signals Downside Risk
A few days later, the price action gave rise to the scenario that the analyst had warned against. Ethereum approach the resistance zone but failed to surpass it convincingly. Although the the market tested the regionit never produced the decisive wick above $2,450 that was needed to confirm a claim.
Once the rejection occurred, the bearish scenario described in the previous analysis began to unfold. Ethereum began to move lower, reinforcing the idea that resistance had not been broken. The tracking chart shows prices moving away, with the projected trajectory pointing towards further decline if the market continued to lose momentum.
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The result was also linked to the movement of Bitcoin. Because Ethereum failed to confirm strength at the crucial level, this suggests weakness in the broader market structure. This correlation was used to formulate an idea for a Bitcoin short trade around $82,300, based on the expectation that both assets would decline together.
Technically, Ethereum remains in a distribution phase below resistance and is struggling to generate enough volume for a breakout. Until it decisively reclaims the $2,450 level, the analyst’s framework suggests the market could remain vulnerable to further setbacks. Concretely, the $2,450 level has become the dividing line between a further breakout and continued downside risk.
Featured image of Dall.E, chart by TradingView.com
