Ethereum’s price faced resistance when it attempted to move above the $2,550 level and is now consolidating near $2,450, exhibiting some bearish signals. After initiating a recovery wave that saw it bounce back above $2,400 and $2,420, the cryptocurrency’s value is struggling to maintain momentum.
The price is currently trading below $2,550 and the 100-hour Simple Moving Average (SMA). A notable development occurred when Ethereum broke below a bullish trend line with support at $2,500 on its hourly chart, according to Kraken data.
Ethereum’s recent trading activity showed a climb past significant resistance levels at $2,250, $2,320, and $2,450, paralleling Bitcoin’s rise above $65,000. However, strong resistance around the $2,550 level halted this upward trajectory. After reaching a high of $2,555, Ethereum experienced a notable downturn, dipping below the $2,450 level and failing to stay above the 23.6% Fibonacci retracement level calculated from the $1,911 low to the $2,555 high.
Further compounding the situation, Ethereum broke below a critical support line at $2,500, testing the $2,320 support level. Despite this, it has managed to rise again but remains under the $2,550 threshold and below the 100-hour SMA. The price is currently encountering resistance near $2,500, with significant obstacles identified at the $2,550 mark and the 100-hour SMA.
If Ethereum manages to close above the $2,550 resistance, it could steer towards the next resistance at $2,685, with further gains potentially pushing it to $2,865. Surpassing $2,865 resistance could lead the price closer to the $3,000 mark in the foreseeable future.
Conversely, if Ethereum fails to break above the $2,550 level, it could face another downward trend. Initial support is seen around the $2,350 level, with a major support zone at $2,300. A decisive fall below $2,300 could propel the price toward $2,150, corresponding with the 61.8% Fibonacci retracement level from the $1,911 low to the $2,555 high. Additional losses might push Ethereum’s price down to the $2,120 support level, with further crucial support at $2,050.
Technical indicators show that the hourly MACD for ETH/USD is gaining momentum in the bullish zone while the hourly RSI for ETH/USD is now positioned above the 50 zone. The major support level stands at $2,300, and the major resistance level is identified at $2,550.
