Ethereum price movement suggests falling into a bull trap at $2,550: Important support level is breached
In the cryptocurrency market, Ethereum (ETH) has been facing a bearish trend, with the digital currency's price struggling to surpass the $2,550 resistance level. This rejection at the key resistance point carries significant implications for the coming weeks, potentially signalling a more extended consolidation or corrective phase.
The bearish pattern seen in Ethereum's price action suggests failed upward momentum, and a rotation towards the $2,226 support zone appears probable. This support zone, strengthened by multiple technical indicators, could potentially act as a liquidity pocket and stage a reversal for Ethereum's price.
The rejection at the $2,550 high time frame resistance and subsequent closing below it can be attributed to several factors. Prolonged and unresolved trade talks have created broader market volatility and reduced risk appetite, impacting Ethereum's price negatively and pushing it below $2,500 on July 6, 2025.
Increased inflows of Ethereum to exchanges suggest more holders are potentially looking to sell, adding downward pressure on price. Additionally, while Ethereum shows strong long-term bullish sentiment, a rise in put option volume indicates near-term traders are hedging and expecting possible downward moves.
Competition from faster and cheaper blockchains like Solana, ongoing regulatory uncertainties, and stagnant growth in decentralized finance also weigh on Ethereum's price prospects, restraining upward momentum. Despite underlying technological strengths and institutional interest, Ethereum’s price remains sensitive to macroeconomic factors and market sentiment swings, leading to resistance at pivotal price points such as $2,550.
The region around the $2,550 high time frame resistance includes the 0.618 Fibonacci, dynamic SI resistance, and value area high. The convergence of these indicators strengthens the resistance zone's credibility and highlights the impact of the failed breakout.
As long as Ethereum remains below the $2,550 high time frame resistance, bearish momentum will likely persist. The continued downside remains the more probable outcome for Ethereum's price action, with the rejection from the $2,550 high time frame resistance confirming a possible bull trap formation.
In the near term, Ethereum faces increased downside risk, as it remains below the $2,550 high time frame resistance, and reclaiming this level appears less likely as the price consolidates below it.
In a separate development, Bitrue has opened stock trading to the 24/7 blockchain clock, but there is fine print associated with this service.
[1] Source: Cointelegraph (2025) [2] Source: CoinDesk (2025) [3] Source: Decrypt (2025)
- The rejection at the $2,550 high time frame resistance in Ethereum's price action could indicate a more extended consolidation or corrective phase, potentially signaling a bearish trend in the cryptocurrency market.
- The failure to surpass the $2,550 resistance level and the subsequent closing below it may be due to several factors, including prolonged trade talks and increased market volatility, which have reduced risk appetite and pushed Ethereum's price below $2,500.
- The bearish pattern seen in Ethereum's price action suggests a rotation towards the $2,226 support zone, strengthened by multiple technical indicators. This support zone could potentially act as a liquidity pocket and stage a reversal for Ethereum's price.
- Increased inflows of Ethereum to exchanges and a rise in put option volume suggest that more holders are potentially looking to sell, adding downward pressure to Ethereum's price.
- Competition from faster and cheaper blockchains like Solana, ongoing regulatory uncertainties, and stagnant growth in decentralized finance also weigh on Ethereum's price prospects, restraining upward momentum.
- Despite underlying technological strengths and institutional interest, Ethereum’s price remains sensitive to macroeconomic factors and market sentiment swings, leading to resistance at pivotal price points such as $2,550, making it more probable for the continued downside in Ethereum's price action.
In a separate development, Bitrue has opened stock trading to the 24/7 blockchain clock, but there is fine print associated with this service.
