Ethereum’s price recently underwent a downward correction from its peak near the $2,700 mark, dipping into a consolidation phase as it wrestles to maintain support above $2,500.
After descending below the $2,650 and $2,620 thresholds, ETH experienced a significant move beneath these levels, further extending its decline. The drop also breached the 23.6% Fibonacci retracement level, which tracks the recent upward swing from $2,311 to $2,722. Contributing to the downward momentum was the break below a key bullish trend line, which had been offering support around the $2,620 mark on the ETH/USD hourly chart.
Ethereum’s trading activity now finds itself below not just the critical $2,650 level, but also beneath the 100-hourly Simple Moving Average. Bulls are actively attempting to stave off additional declines, particularly maintaining above the $2,500 support zone.
In the event of a resurgence, Ethereum’s price will likely encounter resistance near the $2,600 mark and the 100-hourly Simple Moving Average. The first significant resistance barrier is around $2,625. Achieving a close above this level could potentially propel the price towards the $2,700 resistance. Further resistance stands near $2,720, and surpassing this marker might drive the price up to the $2,880 resistance zone in the foreseeable future.
However, should Ethereum fail to overcome the $2,625 resistance, the downtrend may persist. Initial support on this decline is around $2,520, closely linked to the 50% Fibonacci retracement level of the recent rise from $2,311 to $2,722. Stronger support remains near the $2,500 zone. A decisive move below this level could steer the price towards $2,450. Continued losses could further depress the price to the $2,320 support level, with subsequent key support around the $2,250 mark.
Technical indicators reflect this momentum: the MACD for ETH/USD is gaining traction in the bearish zone, and the RSI for ETH/USD has dropped below the 50 zone, signaling bearish conditions.
The major support level to watch is $2,500, while the major resistance level is $2,625.
