Ethereum’s price has shown signs of recovery, attempting to move above the $2,420 mark. However, breaking through the $2,500 resistance is crucial for the cryptocurrency to continue its upward trajectory in the near term.
After experiencing extended losses that pushed the price below the $2,400 level, Ethereum even dipped below the $2,350 support, ultimately finding a low at $2,308. Bulls have since reemerged, driving an attempt at recovery, reminiscent of Bitcoin’s recent price movements.
Significant upward movement was noted as Ethereum managed to breach both the $2,350 and $2,400 resistance levels. Additionally, the price ascended past the 50% Fibonacci retracement level of the downward wave from the $2,565 high to the $2,308 low. A notable break above a key bearish trend line occurred at $2,430 on the hourly ETH/USD chart.
Despite these gains, Ethereum is encountering resistance around the $2,480 mark. Currently, it is trading below $2,480 and the 100-hourly Simple Moving Average. On the upside, the $2,465 level is proving to be a significant hurdle. This level is close to the 61.8% Fibonacci retracement of the downward wave from $2,565 to $2,308.
The critical resistance Ethereum needs to surpass is near the $2,500 level. Successfully closing above $2,500 could propel Ether towards the next resistance at $2,550. Further ascent might see key resistance near $2,620, and breaking through this could push the price further towards the $2,780 zone in the near future.
Conversely, if Ethereum struggles to clear the $2,465 resistance, another decline could ensue. Initial downside support is near $2,435, with major support sitting around the $2,400 zone. Dropping below this could drive the price towards $2,340, with further losses potentially pulling it down to the $2,300 level. The next significant support sits at $2,250.
Technical indicators provide a mixed outlook. The hourly MACD for ETH/USD is losing momentum in the bullish zone, while the hourly RSI for ETH/USD is hovering above the 50 zone, indicating a possible continuation of the current pattern.
Key support levels to watch are $2,400 and $2,300, while significant resistance awaits at $2,500 and higher at $2,620.
