Ethereum’s price appears poised for another rise following a recent downside correction from the $2,700 resistance level. ETH managed to stabilize above the crucial $2,550 support level and is now potentially set for further gains.
After struggling to break through the $2,700 resistance zone, Ethereum’s price formed a high near $2,700 before embarking on a downward trajectory, mirroring movements seen in Bitcoin. The price dropped below $2,620 and even dipped under the $2,600 mark, testing the resilience of the $2,550 support. A low was established at $2,554, but the cryptocurrency has since made attempts at recovery, climbing back above $2,580. Ether succeeded in clearing the 23.6% Fibonacci retracement level of the downward move from the $2,701 swing high to the $2,554 low, signaling an upward momentum.
Currently trading below $2,620 and the 100-hourly Simple Moving Average, Ethereum faces significant resistance near the $2,600 and $2,620 levels. A connecting bearish trend line with resistance around $2,620 can be observed on the hourly ETH/USD chart, aligning with the 50% Fib retracement level of the move from the $2,701 swing high to the $2,554 low. The next major resistance point sits at $2,645, and a break above this level could pave the way for a rise towards the $2,700 resistance zone. Should this level be overcome, ETH could aim for higher resistance levels near $2,720 or even $2,800.
However, if Ethereum fails to surpass the $2,620 resistance, another decline may occur. Initial support on this potential downside is seen near the $2,550 level, with more substantial backup at the $2,525 zone. Falling below the $2,525 support could push the price towards $2,450, with further losses potentially driving it down to $2,400 in the near term. The next critical support is situated around $2,320, suggesting a notable drop if current support levels do not hold.
Technical indicators present a mixed view— the hourly MACD is losing momentum within the bullish zone, and the RSI for ETH/USD is currently below the 50 zone, reflecting potential vulnerability in the immediate trend. Key levels to watch include major support at $2,550 and major resistance at $2,620 as Ethereum navigates its next moves in the market.
