Ethereum's Historic Merge: Everything You Need to Know

Ethereum Breaks Below Critical Technical Level, Signaling Potential Corrective Phase

Ethereum, the second-largest cryptocurrency, has officially breached a crucial technical level—the 200-day Exponential Moving Average (EMA) on the daily chart. This milestone, which Ethereum has defended since February 2025, marks a notable shift in the asset's market structure and could signal the start of a deeper correction that many investors may not be prepared for.

After weeks of consolidating within a narrow ascending channel, Ethereum has finally slipped out, falling sharply below the key 200 EMA. This long-term trend indicator often serves as a critical support level, and its breach suggests that Ethereum may be entering a more prolonged corrective phase.

The selling pressure is further confirmed by the sharp increase in sell-side volume, which underscores the strength of the current breakdown. From a price-action standpoint, Ethereum's recent attempt to test the $2,800 resistance level has failed, and the rejection from that level appears to have triggered a significant wave of selling.

Currently, Ethereum is trading around $2,473, oscillating between major support and looming downside risk. The next potential support lies around the 100 EMA, which has curled upward and is approaching Ethereum's current price. This level may offer a temporary lifeline and prevent the descent from gaining momentum, at least in the short term.

However, investors should not ignore the bearish undertone. The Relative Strength Index (RSI) is drifting toward the 50 level, a neutral zone that could quickly flip into oversold territory if bearish momentum accelerates. Furthermore, Ethereum's inability to maintain the higher low pattern suggests that bulls are losing control of the trend.

Ethereum's slip below the 200 EMA is a major red flag in the current market cycle. If the 50 EMA fails to act as a bounce point, Ethereum may find itself revisiting the $2,300-$2,200 range in the near future. Caution is warranted, as this could be more than just a dip, and investors should closely monitor the situation as it unfolds.