In a recent evaluation of the dynamic cryptocurrency market, Ethereum, the second-largest digital asset by market capitalization, has seen its price undergo a slight retreat from its local zenith of approximately $2,440. As ETH recalibrates, traders and investors alike are keeping a hawkish eye on potential support levels, which might provide a springboard for future rallies.
The correction brings Ethereum below the coveted $2,400 benchmark, yet the digital currency hovers confidently above the $2,320 mark, showing resilience above the 100-hourly Simple Moving Average—a common tool used by traders to gauge market momentum. Analysts have spotted a bullish flag formation on the hourly spectrum, with resistance edging near the $2,360 level, which could be indicative of a consolidation phase before the next leg up.
Amidst the ebbs and flows, Ethereum’s bullish support remains solid with the price gaining traction above the $2,320 resistance-turned-support zone. Previously, ETH had surged past this level, reaching highs before bowing to selling pressure that led to the aforementioned correction, mirroring Bitcoin’s market movements.
The decline brought Ethereum’s price to a momentary touch with the 50% Fib retracement level, calculated from the recent upward wave between the $2,180 swing low and the $2,441 high. Although Ethereum now treads waters above the vital $2,320 juncture, alongside the steadfast 100-hourly Simple Moving Average, it faces a stubborn resistance barrier near the $2,360 landmark.
Should bulls marshal enough strength to clinch a close above $2,400, the pathway could open for a surge towards the $2,440 region, subsequently leading to a potential probe of the $2,500 threshold. Surpassing this level might usher in a renewed upward momentum, with the next notable resistance point lingering at $2,620, and beyond that, aiming for the $2,750 territory.
On the flipside, if Ethereum’s attempt to breach the $2,400 barricade falters, a downward trajectory could ensue. Immediate support looms at the $2,320 level, underpinned by the 100 hourly SMA. Critical support appears at the $2,240 zone, aligning with the 76.4% Fib retracement level of the recent upsurge from the swing low to high.
A decisive dip and closure below $2,240 might trigger a substantive sell-off, plummeting Ether to revisit the $2,165 support level. Escalating losses could potentially drag the price to the $2,120 domain.
As traders watch the hourly movements with bated breath, technical indicators reveal the Hourly MACD gradually losing steam within the bullish territory, while the Hourly RSI rests near the tentative equilibrium of the 50 level. The stakes remain high, with major support pitched at $2,320, while $2,400 stands as a steadfast resistance to watch.
