Ethereum Faces Hurdles Amid Price Correction
Ethereum’s price is currently in a corrective phase below the $2,650 resistance level, now hovering near $2,600 while encountering multiple obstacles. The recent downward trend initiated beneath the $2,650 mark has led to ETH trading lower than $2,620 and beneath the 100-hourly Simple Moving Average.
A significant bearish trend line is taking shape with resistance around $2,630 on the ETH/USD hourly chart. To initiate a fresh upward movement in the near term, the pair must sustain above the $2,550 support level.
The downturn began as Ethereum failed to maintain its position above $2,700, correcting downward below $2,650, mirroring Bitcoin’s trend. It dipped further under $2,600, hitting a low near $2,575 before starting to consolidate losses. A brief rise saw the price inch above $2,600, surpassing the 23.6% Fibonacci retracement level of the decline from the $2,672 swing high to the $2,575 low.
Despite minor rebounds, Ethereum remains below $2,640 and the 100-hourly SMA. Resistance on the upside emerges near $2,625, reinforced by a key bearish trend line at $2,630. This trend line is proximate to the 50% Fibonacci retracement level of the aforementioned downward movement. The first significant resistance is found around the $2,650 mark, followed by another crucial level at $2,665.
Should there be a breakthrough above the $2,665 resistance, Ethereum might experience further gains, potentially reaching the $2,700 resistance zone shortly. However, a more substantial barrier lies at $2,720 or even $2,800.
Conversely, failure to surpass the $2,630 resistance could lead to continued depreciation. Initial support on the downside stands near $2,600, with the first major support at approximately $2,550. A definitive drop below this level could drive Ethereum’s price towards $2,500. Continued losses may push it further down to around $2,450, with the subsequent key support located at $2,320.
Technical indicators suggest that the hourly MACD for ETH/USD is losing momentum within the bearish zone, and the hourly RSI for ETH/USD is now below the 50 mark. Major support levels to watch are $2,575, while major resistance levels remain at $2,630.
