Ethereum’s value has encountered a stubborn resistance that prevented its ascent beyond the $2,550 and $2,580 marks. The second-largest cryptocurrency by market capitalization mimicked Bitcoin’s movements, succumbing to a renewed descent that pierced through the $2,500 support threshold.
An attempt by Ethereum to rally fizzled out as it failed to overtake the $2,550 level. Presently, it hovers beneath the $2,500 landmark and under the shadow of the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a potential trend of concern for investors is the formation of a connecting bearish trend line with resistance nearing $2,480.
Emulating Bitcoin, Ethereum fashioned a short-lived peak prior to embarking on its recent slide below the $2,500 frontier. Beyond breaching the $2,450 level, it marked a fresh weekly nadir in the vicinity of $2,424, subsequently engaging in a phase of consolidating its losses. A slender recovery above the $2,450 marker was met with a robust defense by the bears, particularly near the 23.6% Fibonacci retracement level stemming from the recent fall from $2,614 down to $2,424.
With Ethereum trading under $2,500 and trailing below the 100-hourly Simple Moving Average, resistance now stands firmly at around $2,465. Should it attempt to break through, it may face a further obstacle at $2,480, where the bearish trend line also lies in wait.
The road ahead is fraught with challenges, with significant resistance now cementing itself at the $2,520 level. A decisive move beyond this barrier might ignite a noteworthy rally, potentially propelling the price towards $2,580, and possibly higher.
On the other side of the spectrum, should Ethereum not manage to breach the $2,520 resistance, it could succumb to another drop. Immediate support hovers near $2,440, while a more fortified support lies at $2,425. A breach below this vital support could significantly devalue Ether, perhaps even leading it to test the $2,350 threshold, with the risk of further slumps reaching as low as $2,320.
The technical indicators do not paint an auspicious picture, with the Hourly MACD gathering strength in the bearish zone and the Hourly RSI languishing below the neutral 50 mark, signaling that sellers have the upper hand at present. Consequently, Ethereum’s immediate support and resistance levels to watch are $2,425 and $2,520, respectively.
