Ethereum’s price took a hit as it dipped below the crucial $2,550 support level, mirroring Bitcoin’s struggles. After failing to maintain its position above $2,550, ETH saw its value drop past vital thresholds at $2,520 and $2,500 before testing the $2,420 support zone. It reached a low of $2,411 but is now showing signs of a potential recovery.
In recent hours, Ethereum has moved above the $2,450 resistance level and climbed past the 23.6% Fibonacci retracement of the recent slump from the $2,582 high to the $2,411 low. The ETH/USD hourly chart also shows a break above a bearish trend line, putting the current resistance at $2,450. Despite these gains, Ethereum is still trading below $2,500 and remains under its 100-hour Simple Moving Average.
On the upside, Ethereum faces significant obstacles around the $2,500 mark, which aligns with the 50% Fib retracement level of the recent downward move. The first critical resistance level to overcome is at $2,520, with the main resistance poised at $2,550. A clear upward movement past the $2,550 resistance could propel the price towards the $2,600 mark and potentially beyond, inching closer to the $2,650 resistance zone.
However, if Ethereum fails to break through the $2,500 resistance, it risks another decline. Initial support is found at the $2,450 level, with major support near the $2,400 zone. Should the price continue on a downward trajectory and fall below the $2,400 support, it might head towards the $2,350 mark. Further losses could drive Ethereum’s value down to $2,320, with the next key support sitting at $2,250.
Technical indicators remain mixed. The hourly MACD is losing momentum in the bearish zone, while the hourly RSI has moved above the 50 zone, indicating a slight shift in favor of the bulls. Major support levels are pegged at $2,420, whereas significant resistance levels remain at $2,500. Ethereum’s immediate future hinges on its ability to recover past these critical resistance levels.
