Ethereum experienced a significant price decline, trading below the critical $2,550 mark. This downturn continued, plunging the cryptocurrency beneath the $2,500 and $2,400 support levels. Currently, Ethereum’s price is consolidating at a low of $2,394 after failing to recover above the $2,650 level.
This major decline saw the price of Ethereum dropping below the $2,550 and the 100-hourly Simple Moving Average. During a brief recovery phase, Ethereum managed to surpass the $2,420 and $2,440 marks, nearing the 23.6% Fib retracement level calculated from its previous high of $2,820 to the current low of $2,394.
Despite the short-lived recovery, Ethereum remains under pressure, showing resistance near the $2,500 and $2,550 levels. The hourly chart of ETH/USD reveals a key bearish trend line forming with resistance close to $2,575. Should Ethereum manage to break above $2,550, it could set its sights on the $2,600 resistance level or the 50% Fib retracement level spanning from $2,820 to $2,394.
Beyond this, the next significant resistance level lies at $2,660. If Ethereum can surpass this hurdle, it might propel the price towards the $2,880 resistance zone in the short term.
Conversely, if Ethereum fails to breach the $2,500 resistance, further declines could be on the horizon. Initial support is observed near the $2,420 level with the first major support situated around $2,400. A decisive move below $2,400 could drive the price down to $2,350, potentially attracting bullish activity. If losses continue, Ethereum might target the $2,220 support level, with the subsequent critical support positioned at $2,150.
Technical indicators back this bearish momentum. The MACD for ETH/USD is gaining traction in the bearish zone, while the RSI remains below the 50 threshold. Key support and resistance levels to watch are $2,400 and $2,550, respectively.
