Ethereum Slides Toward $2,500 Amid Broader Market Sell-Off

Ethereum traded around $2,565 on Oct. 7, marking a roughly 5% decline on the daily chart after dropping from an intraday high near $2,700, according to CryptoNews. The downward move followed reports of escalating attacks involving oil tankers around the Strait of Hormuz, which sparked a broader risk-off move across global financial markets and the wider cryptocurrency sector.

The sell-off pushed Ethereum through its 20-day simple moving average at $2,684, bringing the token down to test a critical technical support zone between $2,500 and $2,560, which aligns closely with its 50-day simple moving average. Market data cited by CryptoNews showed that more than $400 million in leveraged long positions were liquidated during the market flush, accelerating the downward momentum.

Technical Indicators and Momentum

Momentum indicators have weakened following the decline. The daily relative strength index fell to 44.55, moving below the neutral 50 level. On the 4-hour chart, Ethereum traded beneath its lower Bollinger Band, while the average directional index rose to 24.36, approaching the threshold associated with a strengthening directional trend.

Analysts noted that the $2,500 to $2,560 range represents a retest of an earlier triangle breakout. Defending this support zone could keep a potential recovery toward the $3,000 level in play, provided the asset reclaims resistance between $2,680 and $2,800. Conversely, a sustained daily or weekly breakdown below the support area could expose the network to a deeper correction.

Key facts

• Ethereum traded around $2,565 on Oct. 7, down about 5% on the day.
• The token tested a key technical support zone between $2,500 and $2,560.
• Over $400 million in leveraged long positions were liquidated during the market flush.
• The daily relative strength index fell to 44.55.