Ethereum is facing significant challenges as its price continued to decline, recently falling below the crucial $2,500 support level. This development came after the cryptocurrency failed to sustain momentum above $2,500, initiating a fresh downturn reminiscent of Bitcoin’s recent performance. Ethereum saw its value drop beneath $2,450 and $2,420, ultimately testing the $2,350 support zone and hitting a low point at $2,357.
Currently, Ethereum is attempting to recuperate from this setback, with minor progress noted as the price edged above the $2,385 resistance zone. This modest recovery has brought it to test the 23.6% Fibonacci retracement level, calculated from the downward movement between the $2,583 swing high and the $2,357 low. However, ETH remains constrained below $2,500 and the 100-hourly Simple Moving Average, indicating lingering bearish sentiments.
The hourly chart of ETH/USD reveals a newly formed bearish trend line, presenting resistance near the $2,445 mark. This trend line appears to be a significant barrier, with additional hurdles identified around the $2,470 level, aligning with the 50% Fibonacci retracement level of the recent decline from $2,583 to $2,357. The primary resistance has consolidated near $2,500. Should Ethereum manage to break through this level, it may pave the way for a climb towards $2,550, and potentially even higher to the $2,620 resistance zone, signaling a stronger recovery.
However, the path to recovery is uncertain. If Ethereum fails to surpass the identified $2,445 resistance, it risks another drop. Initial support on the downside is positioned around $2,380, with the first substantial support at the $2,350 zone. A decisive break below this level could trigger a further decline, driving the price towards $2,285. Continued losses might push Ethereum down to the $2,220 support level, with the next significant support lingering at $2,150.
Technical indicators provide additional insight into the current market dynamics. The hourly MACD for ETH/USD is showing signs of losing momentum within the bearish zone, while the hourly RSI remains below the critical 50 mark. The major support level is currently identified at $2,360, with key resistance at $2,500, underscoring the crucial thresholds that Ethereum must navigate in the near term as it contemplates its next moves in the market.
