Ethereum’s price has extended its decline, dipping below the $2,350 mark. However, ETH is showing signs of recovery, although it faces significant resistance around the $2,300 zone.
The cryptocurrency’s downward trajectory continued, breaking through the $2,350 barrier and trading beneath the $2,400 level, aligning with a bearish phase similar to Bitcoin. It even dipped below the $2,320 support, hitting a low near $2,311 before beginning to consolidate its losses.
In a minor recovery effort, the price climbed above the $2,350 level but remains below the 23.6% Fibonacci retracement level from the recent high of $2,655 to the low of $2,311. Ethereum is currently trading under $2,400 and the 100-hourly Simple Moving Average, facing obstacles around the $2,400 resistance level. A key bearish trend line with resistance at $2,400 is forming on the hourly chart for ETH/USD.
Breaking through this trend line resistance could propel the price towards the $2,480 level, which is near the 50% Fibonacci retracement level of the aforementioned downward movement. An upside break beyond $2,480 could create momentum for additional gains, potentially driving Ether towards the $2,550 resistance zone in the short term, with subsequent resistance around $2,650 or $2,665.
On the flip side, if Ethereum cannot surpass the $2,400 resistance, it may face another decline. Initial support on the downside is expected near the $2,350 level, with more significant support around the $2,300 zone. A decisive move below $2,300 might push the price towards $2,220, and further losses could lead to a decline to the $2,120 support level. The next key support is set around $2,050.
Technical indicators suggest a continuation of bearish momentum, with the MACD for ETH/USD losing pace and the RSI for ETH/USD staying below the 50 zone. The primary support level stands at $2,300, while major resistance remains at $2,400.