The price of Ethereum has dropped by 8%, failing to break through the significant psychological threshold of $2,700, erasing most of its weekly gains.

Currently, the cryptocurrency is hovering around $2,500, continuing its decline from a recent peak of $2,720, with technical indicators suggesting a bearish short-term outlook.

The breach of the $2,600 level and resistance from the 100-day EMA indicate that bears are still in control. The upward trendline, which now aligns with Ethereum’s current price, sits near $2,410. Should bulls fail to strengthen their long positions at this point, the downward momentum for Ethereum could accelerate.

Amid the current volatility, there is a potentially transformative update on the horizon: the introduction of "blobs" through EIP-4844. Tim Robinson, head of crypto research at BlueYard Capital, described this update as “extremely bullish” for ETH in the long run.