Ethereum moves sideways in recent weeks, leaving traders wondering why momentum remains stagnant despite multiple upward pushes. According to an analysis shared by an analyst on X, the answer lies in a specific technical level of the asset repeatedly failed to recover.
Ethereum’s $2,450 barrier
Ethereum’s recent price behavior can be traced to the market’s interaction with a resistance area around $2,450. The analyst announced at the beginning of May outlined that this level functioned as a decisive confirmation point for bullish continuation. The structure suggested that if Ethereum could get above it $2,450, even briefly, would be a signal that the breakout from the current range was real.
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In the chart shared at the time, the region around this price was marked as a critical recovery zone. The analysis argued that once the price reaches such a level, it becomes a strong directional signal for traders. Since the level had no complex confirmation requirements, even a quick move above it would have been enough to validate the bullish momentum.
However, until that threshold was crossed, the analyst maintained a cautious stance. The reasoning was simple: markets often approach major breakout levels, but then reverse when there is buying pressure cannot sustain the movement. The repeated hesitation around $2,450 suggested that the upward move could still fail if the market could not overcome that barrier.
This framework also closely tied Ethereum’s behavior to that of Bitcoin. The analyst mapped the $2,450 level on Ethereum as roughly equivalent to a key resistance zone around $81,000 on Bitcoin. If Ethereum were to confirm a breakout above that point, it would likely boost confidence in the broader crypto market.
Rejection indicates downside risk
Days later, price action delivered the scenario the analyst had warned about. Ethereum approached the resistance zone, but failed to emerge convincingly. Although the market tested the areait never raised the decisive fuse above the $2,450 needed to confirm a chargeback.
Once the rejection occurred, the bearish scenario outlined in the earlier analysis began to unfold. Ethereum started moving lower, reinforcing the idea that the resistance had not been broken. The follow-up chart showed the price drifting away, with the expected path pointing towards a further downtrend in the market continued to lose momentum.
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The outcome was also related to Bitcoin’s movement. Ethereum’s failure to confirm strength at the crucial level suggested weakness in the broader market structure. That correlation was used to frame a short trade idea on Bitcoin around $82,300, based on the expectation that both assets would move lower together.
Technically, Ethereum is still in a distribution phase below resistance and is struggling to generate enough volume for a breakout. Until the $2,450 level is definitively reclaimed, the analyst framework suggests the market could remain vulnerable to further withdrawals. In practical terms, the $2,450 level has become the dividing line between a renewed breakout and continued downside risk.
Featured image of Dall.E, chart from TradingView.com