Ethereum has been struggling to maintain momentum above the $2,550 resistance zone. Despite starting a recovery wave above the $2,400 and $2,420 levels, ETH is currently consolidating near $2,450 and showing a few bearish signs. The price is trading below $2,550 and the 100-hourly Simple Moving Average, indicating a lack of bullish strength in the market. Additionally, a break below a connecting bullish trend line with support at $2,500 on the hourly chart of ETH/USD (data feed via Kraken) further underscores the bearish pressure on Ethereum’s price.
While Ethereum experienced a recovery wave above the $2,250 resistance level and climbed above the $2,320 and $2,450 resistance levels, it faced significant resistance near the $2,550 zone. A high was formed at $2,555 before a downside correction took the price below $2,450. The pair tested the $2,320 support and is currently rising, but the price is still facing hurdles near the $2,500 level. The next major resistance lies at $2,550, followed by potential resistance levels at $2,685 and $2,865. An upside break above $2,865 could propel Ethereum’s price towards the $3,000 resistance zone in the near term.
If Ethereum fails to clear the $2,550 resistance, it could see another decline in price. Initial support on the downside is near $2,350, with the first major support zone at $2,300. A breach below $2,300 could lead to a further decline towards $2,150 and the 61.8% Fib retracement level from the recent swing low to high. Additional losses might bring the price down to the $2,120 support level, with the next key support at $2,050.
The Hourly MACD for ETH/USD is showing momentum in the bullish zone, indicating a potential for a bullish trend. The Hourly RSI is now above the 50 zone, suggesting a positive sentiment among traders. However, these technical indicators should be interpreted with caution, as market conditions can change rapidly.
Ethereum’s price is currently at a pivotal juncture, with both upside potential and downside risks. Traders and investors should closely monitor key resistance and support levels to make informed decisions about their positions in the market. As always, it is essential to conduct thorough research and analysis before making any trading decisions in the volatile cryptocurrency market.
