Ethereum price has encountered difficulties in clearing the $2,720 mark and is currently facing challenges to maintain its position above the critical support level of $2,440. This suggests that further losses may be imminent for the cryptocurrency.
After a surge towards $2,720, the bears made their presence felt, resulting in a downward correction. Ethereum is now trading below $2,550 and the 100-hourly Simple Moving Average. Additionally, a bearish trend line is forming, with resistance near $2,520 on the hourly chart of ETH/USD.
Ethereum managed to outperform Bitcoin, surpassing the $2,550 resistance level. It even broke the $2,600 zone and briefly spiked above $2,700. However, this ascent was short-lived as the bears stepped in near the $2,720 resistance level. Subsequently, a correction in price ensued.
The next major resistance for Ethereum is anticipated near $2,585. A clear breakthrough above this level could propel ETH towards $2,650. The primary resistance is currently forming around $2,720, and a close above it could push the price into a bullish zone. Should substantial gains continue, the next critical resistance would be near $2,780, potentially leading the price towards the $2,880 zone.
On the contrary, if Ethereum fails to surpass the $2,520 resistance level, there is a possibility of further declines. In such a scenario, initial support can be found near the $2,440 level or the 50% Fib retracement level of the upward movement from the swing low of $2,170 to the swing high of $2,716. Lower down, the $2,350 zone could serve as another key support level. A downside break below this level might signal further losses, and the price could test the $2,300 support level. Any further downward movement may potentially lead to testing the $2,240 level.
The hourly MACD for ETH/USD indicates a loss of bullish momentum, while the hourly RSI is now below the 50 level. These indicators suggest a potential continuation of the downward price trend.
As Ethereum struggles to stay above the crucial support level of $2,440, it is facing bearish pressure. The inability to clear the resistance at $2,520 might lead to further downward movement. On the other hand, a breakthrough above the resistance levels could indicate a bullish trend. Traders and investors are advised to conduct thorough research and analysis before making any investment decisions, as cryptocurrency investments carry inherent risks.
Disclaimer: The information provided in this article is for educational purposes only and does not represent the opinions of the author or this publication. It is important to conduct your own research and exercise caution when investing in cryptocurrencies.