Ethereum price has recently tested the $2,400 zone and has managed to recover from some losses. However, in order to see a significant increase in the near term, ETH must clear the $2,550 resistance zone. The price is currently trading below $2,550 and the 100-hourly Simple Moving Average, indicating a potential struggle for a bullish trend continuation.
Technical Resistance Levels
There is a key bearish trend line that is forming with resistance at $2,555 on the hourly chart of ETH/USD. This suggests that the pair could experience difficulty in starting a recovery wave unless it clears the $2,555 and $2,600 resistance levels. Ethereum price’s inability to break through these resistance levels could signal another potential decline in the near future.
Support and Potential Downside
If Ethereum fails to clear the $2,555 resistance, it may face another downward movement. Initial support on the downside is expected near $2,480, with the first major support sitting around the $2,450 zone. A clear break below $2,450 could indicate a further downward push towards $2,425 where bullish activity may be anticipated. However, any additional losses beyond this point could lead the price towards the $2,320 support level, with the next key support level lying at $2,250.
The recent price movement of Ethereum indicates a struggle to break through key resistance levels, and a potential for further downside if these levels are not breached. Traders and investors should closely monitor the price action around the $2,550 and $2,600 levels to gauge the future movement of Ethereum. Additionally, the support levels at $2,480, $2,450, and $2,425 should be closely watched for any signs of a potential reversal in the price movement.
