Ethereum, the second-largest cryptocurrency by market capitalization, faced difficulties in breaking the $2,750 resistance level in recent trading. Currently, ETH is hovering around the $2,635 mark and appears susceptible to further declines.
The trouble started when Ethereum initiated a fresh descent from the $2,750 resistance. With its price now below $2,700 and falling under the 100-hour simple moving average, the outlook is uncertain. The decline included a break below a significant contracting triangle with support at $2,695 on the hourly ETH/USD chart.
Ethereum’s price began a notable rise from the $2,650 support zone, outshining Bitcoin and managing to surpass the $2,720 resistance. Nevertheless, resistance from sellers became apparent near the $2,750 area, pushing the price back down. A swing high was recorded at $2,763 before the price underwent a correction. This downturn saw ETH drop below the $2,720 and later the $2,700 thresholds.
Currently, Ethereum is trading under $2,700 and the 100-hour simple moving average. The price has found temporary stability near $2,635 but remains within a consolidation phase. Should Ethereum attempt another ascent, it is likely to encounter resistance around the $2,700 level, which closely aligns with the 50% Fibonacci retracement of the recent dip from the $2,763 high to the $2,635 low.
The initial significant resistance stands near the $2,735 level, correlating with the 76.4% Fibonacci retracement of the same decline. Should Ethereum successfully close above $2,735, it could rally towards the $2,765 resistance. Further resistance looms near the $2,800 mark, and an upward breakthrough could drive the price towards the $2,880 resistance zone in the short term.
However, if Ethereum fails to overcome the $2,700 resistance, a continued decline is plausible. Initial support levels on the downside are around $2,635, with the first major support found near $2,600. A definitive move below the $2,600 support could push the price toward $2,550, and further losses might drive it down to the $2,520 support level. The next critical support level is situated at $2,440.
Technical indicators reveal a waning momentum within the bullish zone. The hourly MACD for ETH/USD is losing ground, and the RSI (Relative Strength Index) has dipped below the 50 level, indicating a potential bearish trend. The primary support level to watch remains at $2,635, with major resistance holding firm at $2,700.
