Ethereum price has recently initiated a notable decline from the $2,550 resistance zone, experiencing a decrease of over 10% as it attempts to recover from the $2,300 territory.
- Ethereum faces increased selling pressure beneath the $2,550 mark.
- The current trading price is positioned below $2,550 and the 100-hourly Simple Moving Average.
- A short-term bearish trend line is evident, forming resistance at $2,500 on the hourly ETH/USD chart (data feed via Kraken).
- There is potential for a substantial upward movement if the price manages to secure itself above $2,500 and $2,550.
Ethereum Price Dives Over 10%
Ethereum’s price was unable to break past the $2,650 resistance zone, prompting a fresh decline, akin to the movements observed in Bitcoin. ETH saw a swift descent below the $2,620 and $2,550 support levels, leading it into a bearish territory.
The price has plunged over 10%, dipping below the $2,500 support zone, with a low being recorded at $2,309. The market is currently consolidating these losses while witnessing a minor recovery wave above the 23.6% Fibonacci retracement level traced from the $2,855 swing high to the $2,309 low.
At present, Ethereum is trading beneath the $2,550 mark and the 100-hourly Simple Moving Average. Additionally, a short-term bearish trend line is coming into play, imposing resistance at the $2,500 level on the hourly chart of ETH/USD.
On the upside, Ethereum is contending with obstacles near the $2,500 level. The foremost major resistance manifests around the $2,580 area or the 50% Fibonacci retracement level of the decline from the $2,855 swing high to the $2,309 low.
The principal resistance level remains positioned near $2,650. A decisive movement surpassing this resistance could propel the price towards $2,720, and a further breakout above $2,720 might suggest more substantial gains in subsequent sessions. In this scenario, Ethereum could potentially ascend towards the $2,850 mark or even target the $2,920 resistance zone in the near future.
Is Another Decline in Ethereum Imminent?
Should Ethereum fail to overcome the $2,580 resistance, it may trigger another decline. The initial support level on the downside is anticipated around $2,420, while the first significant level of support is around the $2,350 zone.
A clear decline below the $2,350 support may force the price towards the $2,300 support. Further losses could see the price descend to the $2,200 support level, with the next crucial support set at $2,120.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is mostrly losing momentum within the bearish zone.
Hourly RSI – The RSI for ETH/USD currently indicates a position above the 50 zone.
Major Support Level – $2,420
Major Resistance Level – $2,580
