Ethereum is currently experiencing a correction from its recent gains at the $2,720 resistance level, now trading below $2,650. Potential buying interest might emerge near the $2,600 mark.
The cryptocurrency initially climbed above $2,650, extending past $2,700 before encountering bearish pressure at $2,728. This led to a downside correction, mirroring Bitcoin’s movement. Ethereum fell below both the $2,700 and $2,650 levels, and is now trading under the 50% Fibonacci retracement level of its previous upward trend—from the $2,554 low to the $2,728 high.
Presently, Ethereum is priced below $2,650 and its 100-hourly Simple Moving Average, indicating further bearish sentiment. However, the price could stabilize around $2,600 or the 76.4% Fibonacci retracement level of the prior upward move.
Resistance levels are forming at $2,650, with a key bearish trend line on the hourly chart of ETH/USD. Major resistance initially appears near $2,685, followed by another critical level at $2,720. Surpassing the $2,720 barrier could usher in additional gains, potentially pushing Ethereum toward resistance zones at $2,840, $2,880, or $2,920.
On the flip side, if Ethereum fails to overcome the $2,650 resistance, a continued decline is possible. Initial support lies near $2,600, with significant support at approximately $2,550. A decline beyond this support level could drive prices down to $2,520, and possibly further to $2,450 in the near term. The next major support is situated around $2,365.
Technical indicators show the hourly MACD gaining momentum within the bearish territory, while the RSI for ETH/USD has dipped below the 50 threshold. The major support level to watch is $2,600, with key resistance pegged at $2,650.
