Ethereum’s price has been experiencing a turbulent period, finding itself entangled below the $2,550 resistance mark. As of now, ETH is trading above $2,500, but it seems to be encountering substantial challenges in its attempt to ascend back above the $2,550 threshold.
The recent market activity saw Ethereum embarking on a downward trajectory below the $2,550 zone. The cryptocurrency’s price is currently positioned beneath $2,520, along with the 100-hourly Simple Moving Average. On a shorter timeframe, there appears to be a consolidation pattern developing with resistance identified around $2,500 on the hourly ETH/USD chart, sourced from Kraken’s data feed. Critical for ETH’s resurgence is its ability to maintain support above the $2,420 level if it’s to initiate a fresh rally.
In more detail, Ethereum’s price saw a 5% plunge, further deepening its bearish stance by slipping below the $2,600 mark. This move penetrated the $2,550 support level, echoing Bitcoin’s descent, and continued its decline past the $2,500 benchmark. The formation of a low at approximately $2,413 signaled an interval of consolidation amidst the incurred losses, followed by a slight uptick above the $2,450 level. This recovery saw the price advancing past the 23.6% Fibonacci retracement of the downfall from the $2,655 high to the $2,413 low.
Ethereum is now caught under the $2,520 level and the 100-hourly Simple Moving Average. On the upside, barriers are notable near the $2,520 mark, coupled with a short-term consolidation pattern indicating resistance at $2,500 on the hourly ETH/USD chart. The first significant resistance is poised near the $2,535 level, aligning with the 50% Fibonacci retracement of the noted downward movement. Following closely, the next pivotal resistance rests around $2,550.
Should there be a breakout above the $2,550 resistance, it may set the stage for further gains in subsequent trading sessions. Such a development could prompt Ether to target the $2,620 resistance zone imminently, with a subsequent challenge near the $2,650 to $2,665 range.
Conversely, failure to breach the $2,520 resistance may precipitate continued decline for Ethereum. Immediate support on the downside emerges near the $2,440 level, with a more substantial support zone around $2,420. Breaching the $2,420 support could drive the price down towards the $2,350 mark. Further losses might propel ETH towards the $2,250 support level in the forthcoming period, with a subsequent critical support level at $2,120.
Technical indicators reflect this cautious outlook, with the Hourly MACD losing momentum within the bearish territory, and the Hourly RSI dipping below the 50-mark territory. The primary support level is pegged at $2,420, while the major resistance looms at $2,550.
