Ethereum (ETH) has struggled to maintain its upward momentum, struggling to extend gains above the $2,700 resistance zone. Following Bitcoin’s trend, ETH began a downside correction, dipping below key support levels.
Recent Price Movements
– Initial Decline: Ethereum’s price saw a drop below the $2,650 level, extending the correction down to $2,620 and further below $2,600.
– Technical Breakdowns: This decline included a break below a connecting bullish trend line with support at $2,620 on the hourly chart of ETH/USD. The price also fell below the 23.6% Fibonacci retracement level of the upward move from the $2,311 swing low to the $2,722 high.
– Current Status: ETH is trading below $2,650 and the 100-hourly Simple Moving Average (SMA), indicating continued bearish pressure.
Resistance Levels
– Immediate Hurdles: If ETH attempts another upward move, it will face resistance near the $2,600 level and the 100-hourly SMA. The first major resistance is located around $2,625.
– Potential Upside: A successful close above the $2,625 level could propel ETH toward the $2,700 resistance. Further, breaking through $2,720 may push the price higher toward the $2,880 resistance zone.
Support Levels
– Downside Risks: On the downside, the initial support is near $2,520, which aligns with the 50% Fibonacci retracement level of the upward move from $2,311 to $2,722. The first major support sits near $2,500.
– Deeper Correction: A clear move below the $2,500 support could lead ETH to further declines, with the next key supports at $2,450, $2,320, and potentially $2,250.
Technical Indicators
– MACD: The MACD on the hourly chart for ETH/USD is gaining momentum in the bearish zone, signaling potential continued downside.
– RSI: The RSI for ETH/USD is below the 50 mark, further indicating that bearish sentiment prevails.
Outlook
Ethereum’s current price action suggests that it may continue to struggle in the short term unless it can regain momentum and break through the $2,625 resistance level. If unable to do so, the price could revisit lower support levels, with $2,500 being crucial to preventing a deeper correction.
