The muskit coin price predictionsecond-largest cryptocurrency faces selling pressure after failing to sustain above $2,700, with traders closely monitoring Fibonacci retracement levels for potential reversal signals.
ETH/USD encounters resistance near $2,650 following rejection at yearly highs
Hourly charts show weakening momentum as price slips below 100-period SMA
Market depth data reveals substantial liquidity clusters around $2,600 support zone
Derivatives markets show reduced open interest as traders book profits
Technical Breakdown: Understanding ETH's Retreat
The digital asset's pullback from $2,728 follows three consecutive weekly gains, with the current correction representing a natural consolidation phase. On-chain analytics indicate network activity remains robust despite price volatility, with Ethereum's gas usage patterns suggesting continued decentralized application engagement.
Chart technicians note the importance of the 61.8% Fibonacci retracement level at $2,610, which aligns with the visible range low from September 28th's trading session. The $2,550-$2,600 zone contains multiple technical confluence factors including:
- Previous swing high from September 21st
- 200-period moving average on 4-hour timeframe
- Volume profile value area low
Market Sentiment Shifts as Volatility Returns
Options markets show increased demand for downside protection, with put/call ratios rising to 0.65 from 0.48 earlier this week. This sentiment shift comes as perpetual swap funding rates normalize following extended periods of positive funding during ETH's rally.
Exchange order book analysis reveals asymmetric liquidity, with comparatively thinner resistance above current levels versus stacked bids below $2,600. This microstructure suggests potential for rapid moves should either support or resistance levels break decisively.
Critical Thresholds for Ethereum Traders
Market participants should monitor these key technical developments:
- Bullish scenario: Sustained defense of $2,600 followed by break above descending trendline near $2,650 could signal continuation pattern
- Bearish scenario: Failure to hold September's swing low at $2,554 may trigger algorithmic selling toward $2,450 liquidity pool
Momentum oscillators show mixed signals, with the daily Relative Strength Index cooling from overbought territory while the MACD histogram flattens near zero line. Such divergence typically precedes periods of directional resolution.
Trading volume patterns remain constructive, with pullback volumes running approximately 18% below advance volumes during the recent rally - a potentially healthy correction characteristic.