As of May 26, 2025, ETH/USD (Ethereum/US Dollar) has entered a short-term correction phase, trading below the key $2600 level on the 1-hour chart. This move follows a sharp decline from the previous day, and the price is now showing signs of stabilizing around the 200SMA (red line).
On the fundamental side, reduced expectations for U.S. interest rate cuts and deteriorating sentiment in the overall cryptocurrency market are also impacting Ethereum.
The current price is positioned between the short-term 50EMA (blue line) and the long-term 200SMA (red line), suggesting a support-to-resistance flip during the recovery. The 50EMA is trending downward, and selling pressure is evident during price rebounds.
This pattern is known as a “bearish retracement,” where continued rejection at the MA50 implies a likely continuation of the downtrend. For more on moving averages, refer to Wikipedia - Moving Average.
The MACD (Moving Average Convergence Divergence) indicates deceleration in bearish momentum. Currently, the MACD line (yellow) remains below the signal line (red), but the gap is narrowing, and the histogram is gradually shrinking in negative territory.
This behavior suggests easing downward pressure and hints at a possible reversal. However, a bullish crossover—where the MACD line crosses above the signal line—is needed to confirm a trend reversal. For MACD fundamentals, see here.
The ADX (Average Directional Index) currently ranges between 20 and 25, suggesting a lack of strong trend clarity. However, the –DI (red) remains dominant over the +DI (green), indicating that bearish momentum still holds.
If the ADX rises above 30 again, a renewed acceleration of the downtrend may follow, making it important to watch closely.
Volume increased significantly during the price drop, likely due to real selling demand and stop-loss triggering. In the subsequent sideways movement, volume has declined, suggesting a temporary pause in trading activity.
Historically, Ethereum is known for its high volatility, making it important to monitor volume trends closely when assessing short-term moves.
| Level | Price | Significance |
|---|---|---|
| Short-Term Resistance | $2600 | Psychological level, near 50EMA |
| Next Target | $2650 | Previous high, rebound target |
| Short-Term Support | $2550 | Near 200SMA, buy zone |
| Medium-Term Support | $2480 | Previous rebound base, volume cluster |
At present, ETH/USD is at a critical juncture near the $2600 level, where buyers and sellers are battling for control. While MACD and ADX remain weak, they show preliminary signs of recovery, and volume trends will likely influence the next directional move.
In addition to technical indicators, traders should consider crypto-specific factors such as volatility and news flow when forming strategies. Whether the price holds $2550 or recovers above $2600 will be the key near-term focus.
*This article is intended for informational purposes only and does not constitute investment advice. All investment decisions should be made at your own discretion.*
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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