Ethereum’s recent price movements have been a rollercoaster for investors. After a sharp decline that saw the cryptocurrency dipping to the $2,400 zone, Ethereum has shown signs of recovery. However, to initiate a significant upward trend in the near term, ETH must break through the crucial $2,550 resistance level.
Following the steep drop to $2,400, Ethereum entered a consolidation phase. The cryptocurrency remains below $2,550 and trails the 100-hourly Simple Moving Average. A key bearish trend line has emerged, with resistance looming at $2,555 on the hourly chart of ETH/USD, suggesting that the pair might begin a recovery if it can surpass the $2,555 and $2,600 resistance thresholds.
Ethereum’s price originally fell below the $2,650 mark, further slipping under the $2,550 and $2,500 support zones, similar to Bitcoin’s trajectory. Fortunately, bullish activity reappeared around the $2,400 area. A recent low was noted at $2,394, and since then, ETH has mounted a minor recovery. It climbed above the $2,450 and $2,480 levels, breaking the 23.6% Fib retracement level from the previous downward wave, which had stretched from a $2,820 swing high to a $2,394 low.
Currently, Ethereum’s price is below $2,550 and lagging behind the 100-hourly Simple Moving Average. On the upside, the $2,550 level presents a significant hurdle, compounded by resistance from a key bearish trend line at $2,555 on the hourly ETH/USD chart. The initial major resistance lies around $2,600, which aligns with the 50% Fib retracement level of the downward wave from $2,820 to $2,394. A close above the $2,600 mark could propel Ether toward the next resistance at $2,665.
Looking further ahead, the subsequent crucial resistance point is around $2,720. Overcoming this hurdle might fuel a price surge towards the $2,820 resistance zone in the near term.
On the flip side, if Ethereum struggles to break the $2,555 resistance, the cryptocurrency could be poised for another downturn. Initial support on the downside can be found near $2,480, with the first major support at approximately $2,450. A decisive move below this level may see the price dropping to $2,425, where bullish support could potentially intervene. If losses continue, the price might edge closer to the $2,320 support level, with the next key support at $2,250.
Regarding technical indicators, the hourly MACD for ETH/USD is losing momentum in the bearish zone, while the hourly RSI for ETH/USD is currently above the 50-zone. The major support level stands at $2,450, with the primary resistance level at $2,550.
