Ethereum, the second-largest cryptocurrency by market capitalization, saw its price initiate a renewed decline, dropping below the crucial $2,550 support level. This downward movement has placed Ethereum in a struggle, though there might be a chance for recovery if it can surpass the $2,500 resistance zone.
Initially, Ethereum began its descent from the $2,650 resistance area. The cryptocurrency is currently trading below $2,500, tumbling past the 100-hourly Simple Moving Average. Notably, there was a break above a connecting bearish trend line with resistance situated at $2,450 on the hourly ETH/USD chart. This break, however, has not initiated the expected upward momentum, leaving Ethereum still languishing below the $2,500 mark.
Ethereum’s price faltered in maintaining its stance above the $2,550 threshold, leading to a fresh drop, similar to Bitcoin’s recent performance. The cryptocurrency dipped below the $2,520 and $2,500 marks, eventually testing the $2,420 support zone. Establishing a low point at $2,411, ETH is now making cautious attempts at recovery. There was a move above the $2,450 resistance zone, with the price climbing past the 23.6% Fibonacci retracement level from the $2,582 swing high to the $2,411 low.
Furthermore, Ethereum managed a break above a bearish trend line with resistance at $2,450 on the hourly chart, leading to its current position below $2,500 and the 100-hourly Simple Moving Average.
On the upside, Ethereum faces significant resistance near the $2,500 mark and the 50% Fibonacci retracement level of the downward move from the $2,582 high to the $2,411 low. Following this, the initial major resistance level appears near $2,520, with the primary resistance coalescing around $2,550. A decisive move beyond these resistance points might propel Ethereum’s price towards the $2,600 mark, potentially opening the door for further gains and pushing the price towards the $2,650 resistance zone.
Conversely, should Ethereum fail to clear the $2,500 resistance, another downward trend could commence. Initial support on this potential downtrend could be found near the $2,450 level. The first major support level is positioned around the $2,400 zone. A significant break below this could see Ethereum’s price testing the $2,350 mark, with further losses potentially driving the price down to the $2,320 support level in the near term. The next critical support is situated at $2,250.
Technical indicators reveal that the hourly MACD for ETH/USD is losing momentum within the bearish zone, while the hourly RSI for ETH/USD has moved above the 50 zone. The major support level is placed at $2,420, with a vital resistance level at $2,500.
