Ethereum is consolidating below $2,120 after an initial rally pushed the cryptocurrency past $1,950 and $1,980 resistance levels earlier this week. The token briefly advanced beyond the 50% Fibonacci retracement of the recent downward swing from $2,340 to $1,745, signaling cautious optimism among traders. Bulls managed to lift ETH above $2,050, but a key bearish trend line has emerged with resistance around $2,110, preventing further upward momentum on the hourly chart.
Currently, Ethereum trades below the 100-hour Simple Moving Average, highlighting the struggle to sustain gains above $2,100. Immediate resistance sits at $2,110, with a more significant barrier near $2,200, coinciding with the 76.4% Fibonacci retracement level. Analysts note that breaking past $2,240 could open the path toward $2,350, with potential upside extending to $2,550 or even $2,665 if bullish momentum strengthens. Conversely, failure to breach the $2,110 zone may trigger a retracement, with support levels at $2,040 and $2,000, while a drop below $2,000 could push Ethereum back toward the $1,880 zone, testing lows last seen during the previous market downturn.
Technical indicators underscore the cautious outlook. The hourly MACD is losing momentum in the bearish zone, while the Relative Strength Index remains below 50, suggesting subdued buying pressure. Adding to the concern, Ethereum’s Coinbase Premium Index has declined to its lowest 30-day moving average since July 2022, reflecting a notable drop in U.S. institutional demand to levels observed during the deepest stretch of the last bear market. This data suggests that while retail interest remains steady, institutional support is currently limited, influencing price stability.
From a market perspective, Ethereum’s consolidation reflects both technical and psychological resistance points. For traders and investors, monitoring the $2,110–$2,240 zone will be critical in assessing near-term breakout potential or a renewed decline. The combination of weakening institutional demand and key technical barriers indicates that ETH could face volatility in the coming sessions, with implications for DeFi projects, staking returns, and broader market sentiment.
Looking ahead, Ethereum’s ability to surpass $2,240 resistance or defend support at $2,000 will likely dictate its short-term trajectory. Market participants will be closely watching these levels as ETH navigates a delicate balance between bearish pressure and potential upside, making strategic positioning essential in a market still influenced by both technical trends and macroeconomic sentiment.
